Naftogaz Buys 14% More Gas in Jan-Oct

Ukraine state gas monopoly Naftogaz bought 19bn m³ in the first ten months of the year, up 2.4bn m³ (14%) on the same period of 2016. 

In October alone, Naftogaz purchased 1.5bn m³ of gas: 1.1bn m³ came from its domestic production arm Ukrgazvydobuvannya (UGV) and 0.4bn m³ came from foreign suppliers.

Ukraine has not imported gas from Russia for the second year running, with all imports coming from the west. This behaviour is being challenged by Gazprom in the Stockholm arbitration court, as it interprets the take or pay clause in its contract with Ukraine as legally binding, with financial penalties due if the court agrees. That decision is expected by the year-end but the previous expected deadlines have slipped.

Over the first 10 months of 2017, Naftogaz imported 29% more than in the same period of 2016. This year, Naftogaz is procuring imported gas from 13 European suppliers, with none of them accounting for more than 30% of total gas imports.

Over the first 10 months of 2017, Naftogaz purchased 11.5bn m³ from UGV compared with 10.8bn m³ in the same period last year. 

All gas bought from UGV is used to satisfy the needs of protected consumer categories, including households, religious organisations and district heating companies supplying hot water to those protected categories, and Naftogaz tops up UGV's output with imported gas as required. The company does not supplying gas directly to households, but it is resold by intermediaries, a bone of contention as the price Naftogaz sells at is regulated and low.

Natural gas imports to Ukraine in the first 10 months of 2017 and 2016 (bn m³)

*- imports below 0.1 bcm