4 Jul 2022 09:27

Ukrtransgaz doubles rates for gas storage, injection, quadruples rates for offtake

MOSCOW. July 4 (Interfax) - Ukraine's National Energy and Utilities Regulatory Commission (NEURC) has more than doubled the JSC Ukrtransgaz rates set two years ago for natural gas storage and injection and quadrupled the rates for gas offtake.

The rates have been raised by 110% to UAH0.40 per 1,000 cubic meters a day (here and below, not including value-added tax) for storage, 120% to UAH243.53 hryvna per 1,000 cubic meters a day for injection and 300% to UAH253.03 per 1,000 cubic meters a day for offtake.

The resolution setting out the regulator's decision was issued on June 30 and published on its website. It went into effect on July 1.

"The review of the rates is due in part to the change in key macroeconomic indicators, including the minimum wage, prices for natural gas and other energy resources," the resolution said.

The Energy Suppliers Association said that the rate hikes will affect the price of gas for nondomestic customers, as well as encourage production companies to sell gas immediately, rather than store up reserves for the heating season.

"The growth of rates for offtake, injection and storage of gas in underground gas storage facilities (UGSF) is also a threat to the energy security of the country, for it will be more lucrative for production companies to sell produced fuel 'from the truck' than to spend additional money on injecting it into UGSF and storage. All this will make it significantly more difficult to build up a strategic reserve of gas to get through the 2022-2023 fall and winter period," the association's deputy CEO for natural gas issues, Vladimir Gnoyevoi was quoted as saying in a press release.

The official exchange rate on July 1 was UAH29.25/$1.