Ukraine’s private gas producers will be able to sell up to 15% of the natural gas they produce to European Union countries
The gas will be sold in specialized trading sessions on the commodities exchange, possibly on the Ukrainian Energy Exchange
The US and Russia are reportedly considering attracting American investors to the Nord Stream pipelines and resuming transit to Europe
The outlook looked far from promising for the Ukrainians, according to the Russian state media outlet, although Ukraine is now proving it wrong after the Ukrainian Cabinet of Ministers decided this week, for the first time since Russia invaded the country in February 2022, to partially reopen natural gas exports.
Gas reserves in Ukraine’s underground storage facilities are currently estimated to exceed 15.8 billion cubic meters, according to ExPro, based on GIE data. This means that, according to the Ukrainian Government, 1.2 billion cubic meters more gas is in storage than had been forecast for November 1.
Ukraine stopped exporting gas a few days after it was invaded, back in March 2022, and if Ukraine is now deciding to export gas, it is because it has a surplus—that is what logic dictates. The fact is that Ukrainian media, led by the Ukrainian News Agency, say that exports of Ukrainian natural gas will soon resume.
The decision to resume natural gas exports was made as part of the Ukrainian Government’s priority action plan and aims to give private companies an additional incentive to increase production and invest in restoring facilities damaged by the war. However, the Ukrainian Government has not yet published this measure on its website, as it usually does with decisions made by its Cabinet of Ministers.
Sales by private companies to EU countries
Ukraine’s private gas producers will be able to sell abroad, exclusively to European Union countries, up to 15% of the natural gas they produced and injected into the gas transmission system (GTS) during the previous month.
Unused gas limits in any given month will not carry over to the following period, and companies will not be able to accumulate the permitted volumes for export at a later date.
This new mechanism is due to take effect on March 1, after the winter, and remain in place until November 30.
Specialized trading sessions
The gas will be sold in specialized trading sessions on the commodities exchange, probably on the Ukrainian Energy Exchange. Companies on a list approved by the Ministry of Energy will be eligible to sell, while non-resident companies may buy. In every case, the resource will be sold to the participant offering the highest price.
Exports may be temporarily suspended if the crisis worsens. The decision will be made by the Ministry of Energy’s Crisis Committee, at the ministry’s initiative or at the request of Naftogaz or the Ukrainian State Gas and Electricity Company, and will then be approved by the Ministry of Energy.
Meanwhile, the Ukrainian news agency says, citing Reuters, that the United States and Russia are reportedly exploring the possibility of attracting US investors to the Nord Stream pipelines and resuming Russian gas supplies to Europe, following the expiration on January 1, 2025, of the transit contract between Naftogaz (Ukraine) and Gazprom (Russia). That was when the transit of Russian gas, which traditionally crossed Ukrainian territory on its way to the European Union, came to an end.