UEEX strongly represented at the 7th Ukrainian Gas Forum

The two-day conference began on October 27 in Kyiv, with the first day bringing together a broad scope of experts and representatives of the Ukrainian gas sector. At the conference, high-level representatives from the private and public sector, technical experts and independent commentators presented their views on recent developments in the gas market, discussed the prospect of a regional gas hub, as well as the impact of price fluctuations on the market.

The Ukrainian Energy Exchange was presented by Business Developer Lisse Geert van Vliet. He was a speaker on the panel "Eastern European Gas Hubs, potential benefits of the creation of a unified gas hub in Europe". Lisse Geert van Vliet discussed the prospects for expanding the possibilities for foreign companies on the Ukrainian gas market, UEEX’ latest achievements and expectations from the SEEGAS initiative

Mr van Vliet stressed that UEEX provides gas trading opportunities in both the GTS and the UGS and that trading on the short-term natural gas market is already taking place. He ensured the audience that everything is in place for the TSO to take part in exchange trading for balancing purposes. While at the moment, the volumes on the exchange are limited because Ukraine has state regulation of gas prices for the population, he agreed with other speakers that the launch of a GPR program would provided the necessary liquidity for the market.

It was announced that a second joint project between UEEX and the operator of underground gas storages in Ukraine will be launched next week, launching the possibility of trade of natural gas that is stored in a customs warehouse mode in underground storages and in a customs warehouse mode with simultaneous use of "short-haul" service. Since both systems are integrated, gas is blocked for orders and positions in UGS facilities, and the exchange sends the trading notification for the movement of goods to the operator only after payment for gas. This product allows to guarantee payment and delivery of goods, trade is carried out in euros, standard agreements can only be concluded between the parties that signed EFET, execution within T+5. The next planned step will be the launch of gas exchange trading with a transfer point at the border.

Lisse Geert van Vliet emphasized the importance of the exchange in building and developing markets as well as integrating them. For this purpose, UEEX takes part in the SEEGAS project, which it sees as an excellent opportunity to increase liquidity, ensure transparent pricing and ensure Ukraine will not become a "monomarket" under conditions of limited transit. To reach these goals, UEEX aims to take the following concrete steps:

• Open gas trading with a transfer point at the border to enable non-residents to trade gas on the exchange.
• Work together on opening information windows to view the trading spaces (markets) of other exchanges in one interface.
• Collaborate on the unification of products and processes of exchanges.

Responding to questions from the moderator of the panel, regarding the pillars of UEEX’ growth in the new year, Mr van Vliet mentioned a gas release program in Ukraine after price caps will expire in April, a marginal purchase and sale price calculated on the basis of exchange prices of short-term standardized products and gas trading by foreign companies of the new products UEEX in launching. He stressed that UEEX is actively developing into all prospective directions and that Ukraine has all the potential to create its own stable gas hub.