14 Nov 2023 12:43

Naftogaz of Ukraine has enough gas to cover possible rise in TPPs' consumption for power generation - CEO

MOSCOW. Nov 14 (Interfax) - Naftogaz of Ukraine has stocked sufficient amounts of natural gas to deal with a possible increase in consumption of the resource by thermal power plants (TPPs) to produce electricity using their gas-fired units, Naftogaz Group CEO Alexei Chernyshov said.

"As for combined heat and power plants, their consumption of gas will not go up. But as far as TPPs are concerned, their level of consumption may grow considerably. But we have the reserves to ensure electricity generation," Chernyshov told Ukrainian media.

He did not disclose the exact amount, but described it as "sufficient."

According to reports, which cited the Naftogaz Group CEO, more than 16 billion cubic meters of gas are currently held in Ukraine's underground gas storage facilities. The government's target for the accumulated amount of gas by the start of the 2023/2024 fall-winter period stands at 14.7 cbm. Naftogaz expects to be able to get through this heating season using domestically produced gas alone.

Should coal-fired units at TPPs get out of order, Ukraine plans to resort to gas-fired units to continue generating electricity.

Chernyshov also said that Naftogaz wants to increase its share of the market for gas supplies to industrial enterprises. Naftogaz controls 21% of this market today.

"Historically, the company has focused in recent years on supplying natural gas to the population and heating and power utilities, i.e. the segments where PSO operates. Apparently, the company did not have the available resources to offer it to the economy either. We have now changed the approach: we have created and acquired available resources and offer them to industry," Chernyshov said. "Fortunately, market rules apply to this segment where manufacturing enterprises operate. The market is governed by its own laws. There is competition: we have been winning in some places, but we have not been winning in others. The share of Naftogaz is approximately 21% today, but we want to increase it," he said.

Naftogaz of Ukraine will be able next year to buy out the entire amount of gas offered by private gas producers if the ban on gas export is extended, Chernyshov said.