Sales of Ukrainian Gas on the Stock Exchange

by Olha Povaliaieva
Thursday, January 13, 2022
2 MIN
Sales of Ukrainian Gas on the Stock Exchange

The largest gas producer of the country reaches the “Ukrainian Energy Exchange” for the first time in history 

At the beginning of this year, the sizeable Ukrainian enterprise Ukrgasvydobuvannya entered the exchange with gas, which is stored in underground storage. The company exhibited a total of 100 lots. The sum of m³ of each lot was 5 million cubes. The total amount of the lot was 1.5 million cubes. Note that the value of 1.000 cubes was almost $1.5 thousand. As a result of the bid, the price of the lot was $72.1 thousand.

The sale of the gas was subject to the transfer of the purchased lot before 19 January. The deal is carried out in two stages:

  • 20% of the final contract is paid to the Ukrgasvydobuvannya as a gas prepayment;
  • 80% is the remaining amount to be paid to the enterprise within 10 days of delivery of the purchased lot. This procedure is carried out with a bank guarantee.

For the record, the Ukrgasvydobuvannya in 2021 was able to extract almost 14 billion cubes of natural gas. Of these, almost 13 billion m³ were transferred to Ukrainian consumers. Such indicators and the first-ever access to the Ukrainian stock exchange do not jeopardize the gas enterprise's state. On December 20, 2021, the subsidiary Naftogaz of Ukraine — Ukrgasvydobuvannya launched a new program of gas extraction using effective methods. The use of modern means of production will be organized on 35 deposits of natural gas in Ukraine.

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