Ukrnafta returns to UEEX with the sale of natural gas

Ukrnafta returns to UEEX with the sale of natural gas Ukrnafta PJSC announced auctions for the sale of natural gas on the Ukrainian Energy Exchange (UEEX), which will be held on November 29. This is evidenced by the UEEX exchange bulletin.

Ukrnafta offers for sale the December-booked resource with the transfer to UGS, a total of 10 mcm in two positions: 10 lots of 20 tcm and 98 lots of 100 tcm. The starting price at both auctions is 25,416.7 UAH/tcm (without VAT) on prepayment terms, or 30,500 UAH/tcm (with VAT).

It should be noted that Ukrnafta has not sold natural gas on the exchanges (except for gas sales for social enterprises in January 2022) for almost three years - since December 2019. According to ExPro data, in 2019 the company sold 49.4 mcm of gas at UEEX, which is 17% of the total resource sold by sellers, for the amount of UAH 287 million (including VAT).

The likely reason for Ukrnafta's return to exchange trading is the approach of the company's new management, after it was headed by Sergiy Koretskyi. It will be recalled that the state took the shares of Kolomoiskyi in the share of Ukrnafta and transferred shares to the Ministry of Defense.

Now, it is not known whether Ukrnafta will regularly go to the exchange or if it will be a one-time event. However, market participants are carefully following these trades.

According to ExPro information, which is available to ExPro Gas&Oil Monthly subscribers, Ukrnafta produced 92 mcm of natural gas in October 2022, and almost 860 mcm in 10 months of 2022 (-7% to 2021).

At the beginning of October, Ukrnafta stored more than 0.5 bcm of natural gas in Ukrainian underground storage facilities.