The actual sale price of gas for rent calculation in November decreased to 28,856 UAH/tcm

According to the results of November, the actual gas sales price is 28,855.75 UAH/tcm (without VAT), the Ministry of Economy reports. Compared to October, the price has decreased by 25%.

The actual gas sales price is the basis for calculating rent for natural gas production in Ukraine. From August 1, 2022, the actual gas sales price is calculated as the maximum value from the following indicators:

- The weighted average price of natural gas supplied by producers in accordance with contracts with Naftogaz concluded as a result of auctions at organized trading platforms.

According to ExPro data, in October-November Naftogaz did not buy gas from private producers on commodity exchanges (UICE, UEEX, and UUEX). Naftogaz Trading LLC purchased 2.9 mcm of the UGS-booked resource on SaaS Platform UICE in November, however, SaaS Platform UICE does not have a license of the NSSMC as a commodity exchange.

- The weighted average price of natural gas supplied by producers to other customers (except Naftogaz), in accordance with contracts concluded as a result of auctions at organized commodity platforms.

In October, Naftogazvydobuvannya PJSC sold 100 tcm of the November-booked resource at the UEEX at a price of 22,500 UAH/tcm (without VAT). In addition, in November, Ukrnaftoburinnia PJSC sold 50 tcm of the November-booked resource at 27,500 UAH/tcm (without VAT), but this price will not be taken into account.

- The arithmetic average price of UA-VTP (next month), which is calculated as the arithmetic average value between the Bid and Ask prices in Argus and ICIS reports. Thus, according to the Ministry of Economy, the Argus price is 28,867.06 UAH/tcm, and the ICIS price is 28,844.43 UAH/tcm. The average price is 28,855.75 UAH/tcm (without VAT).

Thus, the highest values were ICIS and Argus quotes, which were used as a basis for the actual price of gas sales.

The final actual gas sales price is close to ExPro's calculations, which were published in ExPro Daily Gas at the beginning of the month. Thus, according to ExPro's calculations, during October, the market price of natural gas for the November resource was about 28,920 UAH/tcm (without VAT).