Naftogaz 9M Gas Imports Up 53%

Ukrainian state company Naftogaz said it bought 17.5bn m³ of gas in the first nine months of this year, 3.1bn m³ more than in January-September 2016. The company also detailed a substantial increase in its tax and dividend payments to the state in the same period.

As in 2016, Ukraine imported no gas from Russia this year to date, sourcing instead from other European suppliers.

Imports accounted for 41% of Naftogaz's procurement for the period; the other 59% being procured from Ukrgazvydobuvannya, a Naftogaz subsidiary.

Naftogaz said on October 12 that it imported 7.1bn m³ from the European market in January to September this year, 2.4bn m³ -- or 53% -- more than in the same period of 2016. This year, Naftogaz has imported gas from 12 European suppliers based in Germany, Switzerland, France, the UK, the Czech Republic, Poland and Italy. None of these suppliers alone accounted for more than 30% of total imports, it said.

During this period, private companies imported an additional 3.6bn m³ of gas to Ukraine. Naftogaz’s share in gas imports thus declined to 66%, from the 75% seen in the first nine months of 2016.

Imports from and via Slovakia represented almost all of Naftogaz imports, and three-quarters of total Ukrainian imports for the first nine months of 2017.

The Ukrainian government has imposed public service obligations (PSO) on Naftogaz which require it to guarantee the gas supply for district heating companies to provide households and religious organizations with heating and hot water. However, Naftogaz does not supply gas directly, instead regional gas retailers, designated by the government, resell gas procured by Naftogaz.

Marketable gas produced by Naftogaz’s subsidiary in Ukraine is under obligation to supply these retailers. Naftogaz said that it covers the remaining gas requirements of the protected consumer categories and its commercial clients with gas imports.

 Table credit: Naftogaz

Naftogaz details 9M payments to state 

Naftogaz also said October 12 that it paid a total of hryvnia 91.5bn ($3.43bn) to the state budget in January-September 2017, of which 78.2bn taxes and 13.3bn dividends, a total that was almost twice what it paid in the same period in 2016.

This meant the company paid 16% of the total tax and dividend income received by Ukraine in the first nine months of this year.

Naftogaz said April 12 that, starting full year 2016, it had begun paying substantial amounts into the state budget. Up to 2015, it had been a substantial drain on the state treasury. 

Mark Smedley