Naftogaz will supply gas for TPPs and CHPs at 11,000 and 16,500 UAH/tcm - Chernyshov

The Ukrainian government made a decision to assign special duties to Naftogaz of Ukraine NJSC regarding the supply of gas for TPPs and CHPs for electricity generation, Naftogaz Chairman Oleksiy Chernyshov said in an interview with Forbes.

According to Chernyshov, the decision should soon be published on the government's website. The price of gas for electricity producers will be lower than on the market - 11,000 and 16,500 UAH/tcm (including VAT) depending on the conditions of supply.

"This will enable heat producers to use gas for electricity generation without a loss," Chernyshov said.

At the same time, the head of Naftogaz stressed that power plants should primarily operate on coal, as gas is too expensive for the country now. "According to PSO, it may be more profitable for them to work on gas than on coal. But now gas is too expensive for the country to burn it when there is coal," said the head of Naftogaz.

According to Chernyshov, at the beginning of the heating season, Ukrainian UGS stored about 14.5 bcm of natural gas, most of which belongs to Naftogaz.

According to ExPro calculations, gas reserves in the UGS of Ukraine fell below 13 bcm on December 17, with the beginning of the withdrawal season, about 1.7 bcm of natural gas was withdrawn. Naftogaz still keeps the most gas in storage - more than 75% of all reserves. In addition, gas is stored by private production companies, traders, non-residents, consumers and Moldovan Energocom.

Chernyshov noted that Naftogaz managed to attract about $850 million in funds from foreign partners for the purchase of natural gas for the heating season. At the same time, Ukraine's additional needs are estimated at 2 bcm of gas.

Currently, Ukraine practically does not import natural gas from Europe, as gas is traded much more expensively on European markets than in Ukraine. At the same time, Naftogaz may start importing gas this winter (more details on when imports will start and from which directions - in the December 20 issue of ExPro Daily Gas).