Odesa Port-Side Plant to be disconnected from gas supplies for failure to make prepayment

Tuesday, July 19, 2016 - 15:20 (EEST) Section: Latest news

State company Ukrtransgaz, operator of the country`s gas transmission system, has initiated the procedure to disconnect Ukraine`s major chemical manufacturer, Odesa Port-Side Plant (OPP), from gas supplies, following the latter`s failure to make a pre-payment and as a penalty for exceeding the permitted gas consumption level, the company`s press service reported on July 18 evening.
”The disconnection procedure is conducted in accordance with the law in view of the counterparty`s violations of the terms of the natural gas transportation contract, in part related to the advance payment for transportation of natural gas on July 2016 (no prepayment received), and for exceeding the predetermined gas consumption level in the current month,” the statement read.
As of July 18, daily gas consumption volume by OPP amounted to some 1.5 million cubic meters (mcm), with the current month application of 0.1 mcm per day.
On the same day it was also reported that a tender to sell 99.6% shares of OPP failed due to a lack of interest.
As UNIAN reported earlier, during a press briefing on July 14, Head of the Specialized Anti-Corruption Prosecutor`s Office Nazar Holodnytskyi announced the detention of Chairman of the OPP Supervisory Board Serhiy Pereloma and First Deputy Director Mykola Shchurikov on embezzlement charges. Holodnytskyi also reported that a number of searches had been carried out in connection with the case. The State Property Fund has confirmed its readiness to cooperate with investigating authorities.
In mid-May 2016, the Ukrainian government approved the terms of privatization of a 99.6% stake in OPP, one of Ukraine`s largest chemical producers, with a starting offer of UAH13.175 billion. The bidding is scheduled for July 26, 2016. Norway`s Yara Norge; US-based IBE Trade Corp.; Koch Fertilizer, LLC and CF Industries Holdings, Inc.; and Poland`s Ciech S.A. are among the potential buyers for the plant.
UNIAN memo. OPP, which is located in the town of Yuzhny in Odesa region, is Ukraine`s second-largest ammonia and carbamide producer and the third-largest manufacturer of nitrogen fertilizers. The company also handles shipments of chemical products arriving from CIS countries and exports. The company holds a monopoly in the national market of specialized services for acceptance, cooling and transshipment of ammonia.