Page 12 - FSUOGM Week 05 2020

FSUOGM
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impact on the oil market and are also considering moving the day of ministerial meetings from March 5–6 to an earlier date, but there is no final decision yet.
February 4 2020
EASTERN EUROPE
Naftogaz to cut the price of natural gas sold to industrial consumers by 15.3%
Ukraine’s natural gas company Na ogaz says it will cut the price of gas to industrial clients by 15.3% in February 2020 or UAH1,006.80 compared with the price of the current month, to UAH5,593.20 per 1,000 cubic meters, the company said in a press release on January 29.
is is the price of natural gas to be sold to industrial consumers on a prepayment basis with the purchase volume of over 50,000 cubic meter a month and without any debts to the holding’s enterprises, Interfax Ukraine reports.
Gas prices have been a political hot potato ever since the International Monetary Fund (IMF) insisted that the government hikes the prices to bring them in line with international prices. Previously gas prices were subsidised, especially those to households.
e cut has been made easier a er gas prices have fallen dramatically in the last few years and have halved to under $200 per billion cubic meters (bcm). ose prices could fall further as there is currently a glut of gas on the market caused by Na ogaz and its Russian counterpart Gazprom building up signi cant supplies last year in anticipation of another gas war that didn’t come to pass a er a new transit deal was sign in the last days of 2019.
Industrial enterprises purchasing gas without prepayment, the price in February will be cut by 14.2% or UAH1,036.80,
to UAH6,249.60 per 1,000 cubic meters, Na ogaz said.
As reported, since October 1, 2015, public regulation of gas prices for all categories of consumers, except for the
households and heat suppliers for the
needs of households, was cancelled in Ukraine. Since that time, Na ogaz has been supplying gas to industrial consumers, budget-funded organizations and other business entities on market conditions.
e Cabinet of Ministers of Ukraine has also amended a resolution on imposing public service obligations (PSO) on the natural gas market, pegging the price of gas sold by Na ogaz to households and heat suppliers to the Dutch TTF hub quotes.
e relevant changes are enshrined
in resolution No. 17 dated January 24, 2020, the text of which was posted on the government website on January 29.
“From January 1, 2020, NJSC Na ogaz Ukrainy sells/supplies natural gas in accordance with paragraphs 7, 8 and 11
of the Regulation at the prices set by the seller (supplier) and buyer (consumer), but no higher than the level that, in particular, takes into account arithmetic average of the actual prices of natural gas (End of Day) for the next day of gas supply (Day-Ahead and Weekend) at the Dutch TTF gas hub for the period from the rst to 22nd days of the month when gas is supplied, according to the Powernext/EEX exchange information, the di erence (spread) between the price on the TTF hub and the border of Ukraine, as well as the tari for gas transmission services to the point of entry to Ukraine
on interconnection border with Poland/ Slovakia/Hungary,” the government said in the document as cited by Interfax Ukraine.
e Cabinet said that from January
1, 2020, the purchase price of natural gas under PSO cannot be higher than its sale price in accordance with the above conditions, plus the Na ogaz Ukrainy’s trade markup at 1.917% of this price.
bne IntelliNews, January 30 2020
Lukashenko’s Russian
associate to cut oil supplies
to Belarus to 250,000
tonnes in February
Safmar Group companies will be able to supply only 250,000 tonnes of oil more to Belarus in February, according to the TASS news agency, which quoted a source in the
Russian energy industry this week. “Deliveries of Safmar companies are
planned at the level of 250,000 tonnes,” the source said, referring to February plans. Safmar planned to supply 750,000 tonnes of oil to Belarus in January but the plan was reduced to 500,000 tonnes because the country started importing feedstock from third countries, including Norway.
Safmar, the Russian group that controls the assets of tycoon Mikhail Gutseriev, will supply less oil to Belarus this month than originally agreed, three industry sources told Reuters on January 23.
Safmar has been the sole Russian oil supplier to re neries in Belarus this month, as Moscow and Minsk have failed to agree on terms of sales for 2020. According to the sources, Safmar’s Russne and Ne isa units are now set to supply up to 560,000 tonnes of Urals oil (4.1mn barrels) to Belarus this month, including 100,000 tonnes by rail.
Belarus faces shortages of Russian oil
for its two re neries, as Moscow halted crude supply to Belarus on January 1 a er
a contract expired, and the two countries are in negotiations over a new agreement. Minsk said later in January that it had secured a temporary solution on shipment from Gutseriev’s companies, without paying a premium. In past years Belarus bought
oil on terms similar to those for Russian independent re neries, which involved a small premium.
bne IntelliNews, January 31 2020
Ukrainian gov, oil producer
Ukrnafta ready to settle old
debt dispute
Ukraine’s biggest crude oil producer Ukrna a can soon receive from Na ogaz almost UAH30bn ($1.2bn) to repay its tax obligations, Yuriy Vitrenko, the executive director of state-owned monopoly Na oga, said in a statement on February 3.
Ukrna a is owned by the government (represented by Na ogaz) with its 50%+1 stake, while its second-largest shareholder (over 42%) is a business group related to oligarch Ihor Kolomoisky.
is is a part of an amicable agreement signed between Na ogaz and Ukrna a
in February 2019, he wrote on his blog.
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Week 05 05•February•2020