Polish gas worth $48.8 mln to be supplied to Ukraine by private company

Private energy company Eru Trading, a subsidiary of Energy Resources of Ukraine, together with the Polish oil and gas company PGNiG in 2017 will supply 218 million cubic meters of gas worth UAH 1.3 billion, or US$48.8 million, for the needs of the state-owned operator of Ukraine`s gas transportation system Ukrtransgaz, according to the PGNiG press service.

For the first time the contract will be implemented by companies that are not affiliated with the national oil and gas holding Naftogaz of Ukraine, the report said.

It is noted that PGNiG continues to analyze further opportunities for the sale of natural gas in the Ukrainian market, which is developing rapidly due to the introduction of European norms and standards

Earlier, in mid-April, Ukrtransgaz for the first time held open tenders via the ProZorro e-procurement system to purchase for its own needs natural gas worth UAH 9.4 billion, or $353 million, .

The tender was split into ten identical lots of 218 million cubic meters of gas each.

Naftogaz of Ukraine won three lots. Eru Trading, Esco-Pivnich, Trafigura Ukraine, and Gas Trading Company have each won one lot. Trading on three out of the ten lots was canceled as fewer than two bids had been submitted.

In turn, Ukraine`s Economic Development and Trade Ministry reported that Ukrtransgaz had saved over UAH 2 billion, or $75 million, due to the purchase of gas via ProZorro.

Memo. Ukrtransgaz operates 12 underground gas storages (USFs) with a total working capacity of about 31 billion cubic meters. The USFs are an integral part of Ukraine`s gas supply system and gas transit through its territory. The company is also the operator of the main gas pipelines, through which natural gas is exported from the Russian Federation to the EU countries, as well as imported to Ukraine from both Russia and the EU countries. Naftogaz of Ukraine owns 100% of Ukrtransgaz shares.

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