Gas production in Ukraine decreased by 3% after the production stoppage of Ukrnaftoburinnia

Daily natural gas production in Ukraine on December 2 was 51.4 mcm, 3% less than on the last day of November (53 mcm), according to ExPro estimates. Thus, gas production fell to the lowest level since mid-August 2023.

The reduction in production volumes is primarily related to the suspension of production by PC Ukrnaftoburinnia PJSC (UNB) at the Sakhalin field since December 1. UNB has stopped production to comply with the court's decision to cancel the company's special permit. Nevertheless, the company filed a cassation appeal to the Supreme Court requesting to restore the special mining permit.

Gas production decreased by 1.5 mcm per day, about 3% of the total gas production in Ukraine. At current gas prices (according to ExPro Quotations), stopping production costs about UAH 23 million per day of lost profit from gas sales. In a month, the country may not receive about 45 mcm of produced natural gas.

According to ExPro, Ukrnaftoburinnia has been producing about 45 mcm of natural gas per month in recent months and was among the top 3 private production companies in Ukraine. In previous years, the company produced 0.8-0.9 bcm of natural gas per year, reducing production volumes to 0.65 bcm in 2022.