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The average price of natural gas contracted by industrial consumers for February will grow from January by 15-20%, to a record high level of UAH 9,000 – 9,200 per 1,000 cubic meters, according to experts.
"Gas shipments by private companies and NJSC Naftogaz of Ukraine scheduled in February on prepayment terms have gone up in price by 15-20% compared to January, to UAH 9,000 – 9,200 per 1,000 cubic meters," head of the Exploration and Production consulting company on the natural gas market Hennadiy Kobal told UNIAN.
If gas is bought on other than prepayment terms or if the payment is made after delivery, the gas price for industry may soar to UAH 10,000 per 1,000 cubic meters.
Read alsoOne of world’s top energy traders enters Ukrainian gas market - mediaKobal says that the major causes behind such growth are an increase in gas quotations on the European market and the recent weakening of the hryvnia.
"Such a sharp increase in gas prices is the result of high prices at European hubs used as reference by Ukrainian importers. The weakening of the hryvnia was another factor. As of today, imported gas accounts for about 30% of demand on Ukraine's domestic market, and it is more than a half for industry," he said.
Exploration and Production says that the price of gas to be delivered in February on prepayment terms is between UAH 8,520-9,214 per 1,000 cubic meters. The price in January was between UAH 7,350 and UAH 7,800 per 1,000 cubic meters.
The National Commission for regulations in the energy sector was stripped of the right to set prices of gas for industrial consumers in keeping with a new law on the natural gas market, which became effective on October 1, 2015.
In January 2017, Naftogaz reduced minimum prices of natural gas for industrial consumers by 3% compared to December 2016, to UAH 7,552 per 1,000 cubic meters, while a ceiling on prices was lowered by 2.4%, to UAH 8,375 per 1,000 cubic meters.
Late in January, Naftogaz announced it would increase the minimum prices of gas for industrial consumers by 22% as of February 1 compared to January 2017, to UAH 9,215 per 1,000 cubic meters. The ceiling prices are to grow by 21%, to UAH 10,141 per 1,000 cubic meters.