Vitrenko: Naftogaz may conclude contracts with regional gas companies to provide them with process gas

Yurii Vitrenko, Head of NJSC Naftogaz of Ukraine, said that the company was considering the possibility of concluding long-term contracts with operators of gas distribution systems (GDS, oblgaz) to cover their gas needs for production and technological losses, Interfax-Ukraine reports.

“We are considering long-term contracts that could cover their needs in a sustainable market way because they are elements of critical infrastructure. We understand that we cannot deliver the gas we produce to people without GDS operators,” Vitrenko said.

Earlier, Head of GTSOU Serhii Makohon said that Naftogaz could partially provide regional gas companies with domestic production to prevent a sharp increase in tariffs for distribution and the final price of gas for the population in payments.

Makohon explains that if we keep the gas price in the GDS tariff for distribution at the level of UAH 7/cu. m, then the regional gas companies will not be able to buy and provide themselves with the necessary volume of resources and will take it from the backbone networks of the GTSOU.

To recap, the growth of regional gas companies’ debts threatens the stable passage of the autumn-winter period.

As reported, Naftogaz expects negotiations on direct contracts with EU energy companies.

Tags: The Cabinet of Ministers, Naftogaz, heating season, Vitrenko, Gas market, price, gas supplies, Makohon, OGTSU, gas imbalances, DNO

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