Naftogaz to Act as Market Maker on Domestic Exchange

Naftogaz Trading is planning to act as a market maker on the Ukraine energy exchange (UEE), posing bids and offers each day, the state enterprise said in a notice posted February 12. 

“Today, Naftogaz is ready to offer participants European rules, transparent terms and financial guarantees. I hope our activity on the domestic market and the presence of domestic companies in exchange trading will foster a liquid and more transparent market for gas in Ukraine,” said the director of Naftogaz’ integrated gas business, Andrei Favorov.

As a buyer of Ukrainian gas output at loss-making prices, Naftogaz supports the domestic upstream industry and helps develop gas production in Ukraine. It will start buying gas for month-ahead delivery, paying straight after the transfer of gas, it said.

The planned minimum daily quantity will be up to 10mn m³, in lots of 1mn m³, it said. Naftogaz is already an active seller of gas on the UEE, offering gas at the import price. It only trades with companies that have passed the “know your customer” process and have accreditation for UEE.