Naftogaz to start buying gas produced in Ukraine

MOSCOW. April 20 (Interfax) - Ukraine's Naftogaz will start to buy locally produced gas, Ukrainian media reported, quoting a statement posted on the company's website.

Trades will take place on the Ukrainian Energy Exchange.

"The company plans to buy natural gas with delivery at a virtual hub and/or underground gas storage facilities during this and the coming months," the statement says.

The dates and terms of the gas trades are not yet known.

Sergei Makogon, the former head of Gas Transport System Operator of Ukraine, welcomed Naftogaz's decision to start "purchasing gas transparently from Ukrainian producers." "This is not yet an ideal solution, because volumes and prices are not clear. This is not a gas market yet, but this is a move in the right direction, one which was discussed a year ago," he said on social media.

It has been reported with reference to Energy Minister German Galushchenko that a ban on gas exports imposed in 2022 remains in place in Ukraine.

Naftogaz may join this trading next week, the Ukrainian Energy Exchange's top manager for strategic planning and business analysis Igor Bogachev said.

"There is information that Naftogaz will join this trading next week," Ukrainian media quoted Bogachev as saying at the Energy Club forum on Thursday.

At the same time, he declined to comment on a starting price for buying such gas.