Naftogaz sees surge in gas trade in 2021
The trading arm of Ukraine's national gas company Naftogaz saw gas sales volumes surge in the first five months of the year to 3.6bn m3, from 125mn m3 a year earlier, it said on June 9.
Naftogaz Trading had more than than 360 corporate customers involved in sectors ranging from chemicals, metals, processing and energy as of May 3, up from less than 100 at the end of 2019.
"This growth was due to the company's strategy of developing sales on a competitive basis and increasing the customer base, as well as to higher demand for energy during the heating season," Naftogaz said.
Ukraine's gas market has undergone significant reform over the past year. In August last year, the government ended public service obligations (PSOs) for the household gas market, which required Naftogaz to sell its gas to residential customers at regulated prices. The ending of PSOs has eased Naftogaz's financial burden and opened the market up to competition.
PSOs were also ended for Ukrainian heat and energy producers on May 20. As of June 8, some 149 heat and energy producers had applied to the company to conclude gas supply contracts. Of these, 102 have been registered as customers.
Naftogaz Trading is also a key player on the Ukrainian gas exchange, selling 1.5bn m3 of gas on the platform in January through May.