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Posted On

08
September
2022

Ukraine's agricultural sector to need 860 mcm of natural gas for autumn-winter season – UCAB

KYIV. Sept 8 (Interfax-Ukraine) – The natural gas need of the Ukrainian agricultural sector for the period from September 2022 to April 2023 is estimated at 860 million cubic meters, while it is important for the industry to have access to energy resources at a predictable price.

According to the website of the Ukrainian Agribusiness Club (UCAB), the Association has already sent a corresponding appeal on the need to take into account the needs of the agricultural sector and the projected cost of gas to the government.

According to it, the most gas for the autumn-winter season is required for drying grain crops when loading to elevators – 337 million cubic meters, for drying oilseeds – 24 million cubic meters, and for soybeans – 10 million cubic meters. Other major gas consumers are sugar beet producers – 181 million cubic meters, greenhouse business – 180 million cubic meters, flour-grinding, baking and oil extraction industries of the agro-industrial complex – a total of 64 million cubic meters, poultry farms – 44 million cubic meters, and dairy plants – 20 million cubic meters.

The UCAB stressed that natural gas prices in Ukraine had already begun to rise rapidly – if in August 2022 the Naftogaz tariff for enterprises amounted to UAH 31.48 /cubic meter including VAT, then by September 2022 the tariff is UAH 49.99/cubic meter with VAT. At the same time, prices may continue to rise in the future, which will become an unsustainable financial burden for both food producers and their consumers.

According to the association, enterprises partially replace natural gas with alternative fuels where it is technologically possible and there is a financial resource for appropriate investments. However, natural gas remains the main fuel for most of them – from 70 to 85%.

"That is why the enterprises of the agro-industrial complex hope for more predictable pricing and an acceptable level of the cost of natural gas in the autumn-winter period," the association explained the reason for its appeal to the authorities.