First ever electronic trading on natural gas held in Ukraine

“Trades held by UICE comply with the principles of the new edition of the Law of Ukraine “On the natural gas market”, which will come into effect on 1 October 2015, as well as the principles of the European Energy Charter and the Third Energy Package of the European Union,” reads the statement.

The price of natural gas at the first auction amounted to UAH 5225 per 1000 m3, not including cost of transport services, tariffs for which are regulated by the National Commission for Energy Regulatory and Public Services, according the UICE.

“It is expected that as the number of participants in the gas exchange will grow, the auctions will be held on a daily basis, and their results will form the ‘Ukrainian index of prices for natural gas’.

Resident companies of Ukraine as well as international players can act as Participants in these trades. It is assumed that not only gas companies, trading companies and industrial users of natural gas will participate as bidders, but also budgetary and public institutions, which are currently forced to buy gas from monopoly structures at a price above the market price,” reads the statement.

As UNIAN earlier reported, the US-based Trailstone plans to start providing services on sale and purchasing of the natural gas on the Ukrainian market from October 2015, when the new model of Ukraine’s gas market is expected to start working. 

The Verkhovna Rada of Ukraine adopted the Law "On the natural gas market" in April 2015.

The law defines "legal principles of functioning of the natural gas market in Ukraine based on the principles of free competition, adequate consumer protection and security of supply of natural gas, as well as the ability to integrate with gas markets of the states which are parties to the Energy Community, including through the creation of regional natural gas markets".