Ukrainian Energy Exchange held the first electronic exchange auction on the sale of liquefied gas in accordance with the updated Cabinet of Ministers Resolution № 570

Yesterday, December 13, at the Ukrainian Energy Exchange the first electronic exchange auction for the sale of liquefied gas in the electronic trading system was held in accordance with the Resolution of the Cabinet of Ministers of Ukraine dated October 4, 2017, № 882 "On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated October 16, 2014 № 570". By this time, the sale of liquefied gas, crude oil and gas condensate of own production by state enterprises in Ukraine was conducted in the form of a voice auction in trading and operating chambers of the exchange.

25 buyer companies participated in the electronic auction on liquefied gas sales of PJSC "Ukrgasvydobuvannya" 11 of which became winners. As a result of the electronic auction were sold:

- 400 tons of liquefied gas PBA (TWCS "Bazylivschyna") at the weighted average price of 19 338.00 UAH (increase from the starting price was 608.71 UAH);

- 140 tons of liquefied gas of PBA (Iablunivka OPG) at the weighted average price of 19 297.65 UAH (increase from the starting price was 484.07 UAH);

- 60 tons of liquefied gas BT (Shebelynka DPGCO) at the weighted average price of 18,645.56 UAH (at the starting price);

- 70 tons of liquefied gas SPBT (Iuliivskyi PPOGC GPD "Shebelynkagasvydobuvannya") at the weighted average price of 19 508.02 UAH (increase from the starting price was 770 UAH).

It should be noted that compared to the previous voice auction held on December 6, the price of liquefied gas of PJSC "Ukrgasvydobuvannya" on electronic exchange auctions showed growth of 51-745 UAH/t.

"Today we conducted the first electronic exchange auction for the sale of liquefied gas of PJSC "Ukrgasvydobuvannya", this is a significant moment, because we finally switched from outdated voice auctions to the world standard of bidding - the electronic form. First of all, I want to thank the progressive management of PJSC "Ukrgasvydobuvannya", Ministry of Energy and Coal Industry of Ukraine that initiated an update of the Cabinet of Ministers Resolution № 570 and personally - Prime Minister Groisman Volodymyr Borysovych, who initiated this transition and supported all our initiatives in the introduction to better European practices.

Today, we have introduced a transparent market mechanism for the sale of liquefied gas, and we aim at creating a transparent indicator that will be used by all market participants and importers, trading are held in anonymous mode, which completely excludes the possibility of conspiracy. It should be noted that private traders have long enjoyed this mechanism of sales in electronic trading. Today’s electronic exchange auction demonstrated the high efficiency and effectiveness of the chosen path, the benefits of the electronic auction were able to appreciate most of the participants and this effect will be amplified with each new electronic auction as the new trading mechanism is mastered" - said Oleksandr Kovalenko, CEO of the Ukrainian Energy Exchange.