Last month was exceptionally favourable for natural gas trading on the Ukrainian Energy Exchange. Almost 75 million cubic meters of the resource were put up for trading, from which 63% is realized. In July, 24 trading sessions were held on gas sales, a record high since May 2018.
The focus was on the August resource trades - 66% of the starting and sold volumes. 34% of natural gas sold comes from the July resource. There were also proposals for the sale of the UGS resource and the December resource, but there was no demand for these resources. It should be noted that the sales volume of the July resource is higher than the starting, because at the trading session on July 10, the demand for commodity put up by PPC was so large that the company added another 1 mcm to the already put up 1 mcm, and sold the entire volume of the July resource at a price of 5563.60 UAH (192 EUR) per thousand cubic meters, VAT included.
Naftogaz Trading showed positive dynamics. Since July 5, the company has sold 100% of the July volume and 99% of August. This is the best sales performance among other initiators of natural gas trading sessions. Well-chosen pricing strategy of the company plays an important role here, as trading usually goes with an increase in the starting price, as the market requires.
Thus, in July Naftogaz Trading sold 12.3 mcm of July resource and 13.2 mcm of August resource. August for the company started at least productively: Naftogaz Trading sold another 8 mcm of natural gas. Also at the trades on August 2, after a long break, trader Kraft Energy managed to sell 400 thousand cubic meters of August resource.
Since July 1, a wholesale electricity market has been launched in Ukraine. The first trades for the sale of electricity under bilateral contracts for the smooth start-up of the new model of the market took place on June 27. Currently, 157 participants are accredited on the "Electric Power" direction. Exchange trading take place within two trading zones – IPS of Ukraine and the Burstin Power Island.
During the first month of the new electricity market operation at the Ukrainian Energy Exchange, 557325 MWh of peak load electricity and 662485 MWh of off-pick electricity were sold at the trades. Electricity volumes on these trades are not subject to PSO. The total cost of electricity not subject to PSO sold in July is over 1.6 billion UAH (55 MEUR).
During the month, 10.8 thousand tons of liquefied gas with a total value of over 170 million UAH (5.86 MEUR) were sold at the Ukrainian Energy Exchange. There is a pronounced tendency to decrease in price, which is the result of the Ukrainian market oversaturation with this type of fuel.
The total cost of gasoline sold is over 13.5 million UAH (466 thousand EUR). The downward trend is also observed in the price dynamics. There was no significant reduction in deliveries from Russia expected in early summer. The market is oversaturated, so the price falls.
Ukrainian mining companies sell oil at the Ukrainian Energy Exchange. Recently, one of them, Ukrnafta, which had previously successfully sold natural gas on the Exchange, entered to trade oil. Thus, now all of Ukraine’s largest mining companies are represented at CE "Ukrainian Energy Exchange".
For more information about trading results, see the section "Exchange Quotations".
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