The price for calculating the rent fell below $400/tcm for the first time since the new method introduction

According to the results of April, the actual gas sale price is 14,382.34 UAH/tcm (without VAT), the Ministry of Economy reports. Compared to March, the price decreased by 23%.

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 the Ministry of Economy, in April the price was 10,792 UAH/tcm (without VAT).
• 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.
  According to the Ministry of Economy, in March, producers sold the April-booked resource in the stock exchange for 11,166.67 UAH/tcm (without VAT). It is about the purchase of 80 tcm of the April-booked resource by Energo Zbut Trans LLC on the Ukrainian Energy Exchange on March 29.
• 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 14,184.24 UAH/tcm, and the ICIS price is 14,580.43 UAH/tcm. The average price is 14,382.34 UAH/tcm (without VAT). According to ExPro quotations, the price of gas was 14,319.2 UAH/tcm.

Already traditionally, the highest price is the price of analytical agencies, which will be used to calculate the rent rate. It should be noted that for the first time since the implementation of the differentiated approach to determining the rent rate in accordance with the gas price (March 2022), the actual gas sale price fell below $400/tcm - about $393/tcm.

Thus, the rent rate will be 6% (for new wells over 5,000 m), 12% (for new wells up to 6,000 m), 14% (for old wells over 5,000 m), and 29% (for old wells up to 5,000 m).