UEEX positively assessed Naftogaz's entry into gas purchase auctions

The entry of the state Naftogaz of Ukraine NJSC to the Ukrainian Energy Exchange had a positive effect on the gas market and stimulated the entire gas segment. Oleksiy Dubovsky, head of the stock exchange committee of the Ukrainian Energy Exchange (UEEX), announced this in an interview with ExPro.

"Certainly positive. The entry of Naftogaz into the auction activated the market in general. Due to the concentration of demand and supply, we have the result of selling other companies' positions as well," Dubovsky said.

According to him, since the beginning of the war and due to changes in the approach to rent payments, private companies have accumulated a stock of natural gas in storage, which was not needed by the domestic consumer during the wartime demand decline, and it cannot be delivered to the foreign consumer due to the export ban.

Dubovsky noted that Naftogaz has now purchased and continues to purchase resources from 15 companies, and auctions continue every working day. He also added that Naftogaz auctions have a "stimulating effect" in this segment in general.

"As an example, I can cite the fact that during April before the exit of Naftogaz, 15 companies formed positions for sale or purchase, and after the exit of Naftogaz, from the end of April and in May - 25. Therefore, the probability of selling gas to Naftogaz or another to the player has been increased recently," the head of UEEX emphasized.

In his opinion, Naftogaz forms a stable price as the price at which other companies are ready to sell this resource at a certain moment.

"This is the principle of free pricing," Dubovsky concluded.