Ukraine Tenders for More Gas

State Naftogaz Ukrainy is inviting companies to tender for contracts to supply gas, which will be awarded in the period from June 20 2016 to January 20, 2017, it said May 27. This will involve buying gas using Ukraine’s interconnections with the European Union, although it is open to companies or consortia from any country.

Last year the company received a $300mn trade finance loan from the European Bank for Reconstruction and Development (EBRD) to bridge the gap between the purchase and sale of natural gas. The government regulates the retail gas price for the residential sector and utilities, and payment discipline is also weak.

It has also invited companies and consortia to apply for prequalification for gas supplies, by a deadline of June 10, but it says that "in order to maximise the number of qualified tenderers under this facility, new applicants may apply for prequalification throughout the duration of the facility. Interested firms and consortia may therefore submit a prequalification application after the initial deadline for submission of prequalification applications. 

The EBRD is keen to help Ukraine's gas sector liberalise along European Union lines, including eventually the unbundling and possible sale of its huge but old pipeline network.

In a previous EBRD-backed tendering process, Ukraine contracted Engie, Eni, E.ON, Swiss Axpo and UK-based Noble Clean Fuels to provide gas.

William Powell