Naftogaz Trading Resumes Natural Gas Sales on the Exchange
On May 20, 2024, the gas supply company Naftogaz Trading sold natural gas on the Ukrainian Energy Exchange for the first time since January 2022. The transaction involved 1 million cubic meters of gas, priced at 22,083 UAH per thousand cubic meters (excluding VAT), or 26,500 UAH including VAT. This sale marks a significant milestone in the company’s return to exchange-based activity, as its previous sale occurred more than two years ago. For context, the Ukrainian Energy Exchange serves as a key platform for transparent energy trading in the country.
Additionally, on May 14, 2024, the company purchased gas on the exchange for the first time in ten months. In early April, Naftogaz Trading announced it would resume gas sales to industrial consumers. Throughout April, the company offered gas but only completed its first exchange sale in May. According to traders, Naftogaz Trading could have sold 100–120 million cubic meters of gas for delivery in May through July through off-exchange transactions in April.
Challenges Facing the Company
Despite these positive developments, Naftogaz Trading has faced serious challenges. On the nights of May 18, 19, and 20, Russian forces attacked the company’s facilities. On May 18, Russian drones struck Naftogaz sites in the Dnipropetrovsk region, including a Ukrnafta gas station, injuring two female employees and destroying the station’s building and equipment. On the night of May 19, the Russian army targeted Naftogaz Group facilities in the Dnipropetrovsk region with three ballistic missiles. Furthermore, on the night of May 20, Russian troops launched a missile attack on Naftogaz sites in the Chernihiv region.
These events highlight the difficult circumstances facing Naftogaz Trading.
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The resumption of gas sales on the exchange signals some positive shifts in the company’s operations. However, ongoing attacks by Russian forces pose serious risks to its stability and security. Given the current situation, it is crucial to monitor the company’s next steps and potential impacts on Ukraine’s energy market.
As Naftogaz Trading navigates its renewed presence in the gas market, it is crucial to understand the broader context of energy pricing in Ukraine. Recent measures have been taken to stabilize gas tariffs, with the government securing annual prices through 2027. This development may significantly impact market dynamics and consumer costs. For more insights on this important topic, read about how Ukraine has locked in annual gas prices.