KIEV: Ukraine’s state-run energy company, Naftogaz, is hoping to launch its fourth tender this quarter for natural gas for the country, as negotiations with long-term supplier, Russia’s Gazprom, have yet to make progress.
The company said the upcoming fourth tender wasn’t awarded last month as it was priced too high in relation to Ukraine’s average gas cost, according to reports.
In December, Naftogaz awarded three tenders, of which two supply contracts were granted to UK-listed Noble Clean Fuels, and one was awarded to French energy group ENGIE. The negotiated prices were reported below Russian gas prices, but no prices were disclosed.
In an attempt to obtain better prices from Gazprom, Naftogaz halted purchases from the supplier in November, claiming it had enough fuel in storage to allow it to negotiate better prices this quarter, as well as source gas from different suppliers, Kallanish Energy notes.
Kiev and Moscow have yet to agree on a price for this quarter’s gas deliveries. The latest price proposal from Naftogaz was presented to Gazprom late last month, without an immediate answer.
Naftogaz Ukrainy Chairman Andriy Kobolev said in an interview broadcast Monday the delivery negotiations with Gazprom are simply a business process. “If we agree [on the price], it’s OK. If we don’t agree, we’ll buy gas somewhere else … This would be a trivial commercial decision for us — to buy or not to buy,” he added.
The most recent contract price for Russian gas bound for Ukraine in the first quarter is reported to be $230 per 1,000 cubic meters (cu m). However with an agreed-to discount, the actual offered price is believed to be roughly $212.23/1,000 cu m.
