Naftogaz says increased its share of 'free' gas market to 30% in 2023

MOSCOW. March 12 (Interfax) - Ukraine's Naftogaz increased its share of the Ukrainian "free" gas sales market to 30% in 2023 from 8% in 2022, Ukrainian media quoted its CEO Alexei Chernyshov as saying in an interview with Ukrainian media.

He said some of the gas sold on the market was purchased from private producers on the exchange, and that in total some 1 billion cubic meters was bought from private traders last year.

"We increased our share of the free market from 8% to 30% in 2023. Our purchases of gas from private traders are beneficial both for them and for us. This is a segment where we are not restricted by state regulation," Chernyshov said.

He also said that daily gas production in the first few months of this year had been 10% higher than at the beginning of 2023. The group's gross production target for 2024 is about 15 bcm including Ukrgazvydobuvannya and Ukrnafta, and the commercial target more than 14.5 bcm.

He said Ukraine in general produced about 18.5 bcm of gas in 2023 and consumed about 19.5 bcm.

"We still need to consume it more economically. Ukraine is one of the least energy efficient countries. In addition to increasing production, state energy efficiency programs should be implemented with the simultaneous gradual liberalization of prices for households. There'll be no point to energy efficiency programs without a transition to market prices," Chernyshov said.