ERU Trading and Trafigura Ukraine will supply natural gas to Ukrtransgaz

On September 10, 2018, the Ukrtransgaz JSC held two tenders for procurement of natural gas. Both tenders had the same threshold price of UAH 1.3 bil (including VAT) and procurement volume of 1.3 bil cbm of natural gas. The delivery for both tenders is expected from September 1, 2018 till April 30, 2018.

The winner of the first tender was ERU Trading LLC (as directed by Mr. Andriy Favorov) with the bid proposal of UAH 10,084 (VAT included) per Mm3.

The second tender was triumphed by Trafigura Ukraine (as directed by Mr. Taras Savchenko) with the bid proposal of UAH 10,083 (VAT included) per Mm3.

Other bidders, who competed in the above mentioned tenders, were Naftogaz Ukraine National Joinsk Stock Company and DTEK Trading LLC. Last week Ukrtransgaz held a tender for the threshold price of UAH 2.2. bil (VAT included) per 2.1 mil cbm of natural gas. At that time, it were ERU Trading, Trafigura Ukraine, and Naftogaz Ukraine, as competing for the procurement. The winner was ERU Trading with their bid proposal of UAH 10,047 per 1,000 cbm of natural gas.

Noteworthy, all of the above mentioned tenders should have been held at the beginning of August. According to Ukrtransgaz’s procurement schedule, they should have conducted all of 12 tenders planned, however only 8 tenders have been held so far. The remaining 4 tenders were canceled. At that time, Naftogaz Ukraine won in 7 tenders, and succumbed only to Trafigura Ukraine in the remaining one.

There is still one reserved UAH 2.2 bil (VAT included) tender in Ukrtransgaz’s procurement schedule, still it is unknown, if they will ever hold auctioning competition for it.