Regional gas distributors owe Naftogaz nearly US$2.2 bln – CEO

CEO of NJSC Naftogaz of Ukraine Andriy Kobolyev says regional gas distribution companies and regional gas sales companies, most of which belong to Ukrainian businessman Dmytro Firtash, as of January 1, 2019, owe Naftogaz about UAH 60 billion (US$2.2 billion). "As of the beginning of 2019, regional gas companies had increased debts before [the state-run gas transport system operator] Ukrtransgaz [which is wholly owned by Naftogaz] for balancing services to UAH 30.4 billion [$1.1 billion]. As of the same date, the associated regional gas distribution companies increased their debt before Naftogaz to UAH 29.3 billion [$1.1 billion]. In total, about UAH 60 billion," he wrote on Facebook on January 28. According to the CEO, the funds that the regional companies owe Naftogaz would be enough to fully finance a 10-year program for modernization of the country's gas transmission system (GTS). As UNIAN reported, Kobolyev earlier said that Naftogaz of Ukraine in 2018 expected financial results would be worse against 2017 due to large debts the said companies had accumulated before Naftogaz. NJSC Naftogaz of Ukraine created three subsidiaries for supplying gas directly to the industry, municipal heating companies and households in circumvention of regional gas distribution companies. Naftogaz of Ukraine GSC (Gas Supply Company) will supply gas to households, Naftogaz Heat GSC will deliver gas to local heat suppliers, and Naftogaz Trading GSC – to commercial customers. UNIAN memo. GTS balancing services is part of Ukrtransgaz's functions aimed at ensuring stable and predictable operation of the entire system. As part of its efforts, the operator collects applications from producers and distribution companies, as well as consumers, on gas volumes produced, transported, and consumed. Based on the data, a forecast is made for the GTS operation (balance). In case of deviations of the actual indicators from the forecast (non-balance), the GTS operator eliminates it. For example, if necessary, the operator can withdraw gas from underground storage facilities. After performing such operation (system balancing services), Ukrtransgaz issues an invoice to the company, which caused the non-balance, for services provided. Ukrtransgaz operates 12 underground gas storages (USFs) with a total storage capacity of about 31 bcm. The USFs are an integral part of Ukraine's gas supply system and gas transit through its territory. The company is also the operator of trunk gas pipelines carrying gas from Russia to the EU. Ukrtransgaz is wholly owned by NJSC Naftogaz of Ukraine.

Regional gas distributors owe Naftogaz nearly US$2.2 bln – CEO

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