Naftogaz can partially provide regional gas suppliers with Ukrainian-produced gas to prevent sharp rise in tariffs – GTSOU head

KYIV. Sept 10 (Interfax-Ukraine) – Amid a sharp rise in market prices for natural gas, NJSC Naftogaz Ukrainy may partially provide operators of gas distribution systems (gas distribution stations, regional gas supplying companies) with domestically produced gas to prevent an increase in distribution tariffs, Head of the Gas Transmission System Operator of Ukraine Serhiy Makogon has said.

"The regional gas tariff currently provides for a cost [for production and technological losses] of UAH 7.40 per cubic meter, and the price on the market is already UAH 21. The regulator shall set a new tariff by January. Question: what price for gas will be included in the tariff? If it is UAH 21, then it will be a very significant increase in tariffs for the distribution of gas for households. I think it is politically impossible," he told Interfax-Ukraine.

Makogon said that if we keep the gas price in the gas suppliers’ tariff for distribution at the level of UAH 7 per cubic meter, then the regional gas supplying companies will not be able to buy and provide themselves with the necessary volume of gas, and they will take it from the trunk pipelines of the GTSOU, so now various options for resolving this problem are being discussed.

At the same time, he recalled that Naftogaz sells most of its gas at prices below the current market to thermal generating companies, and also sells it for the needs of households, "therefore, there will not be enough domestic gas for everyone."