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The Supervisory Board of the National Oil and Gas Holding Naftogaz of Ukraine has authorized the company's management to conclude framework agreements for the supply and delivery of gas with another two European gas traders - Vattenfall Energy and Trafigura Trading, that’s according to a Naftogaz statement published Tuesday, July 18.
"The Supervisory Board agreed to a conclusion of a major deal by the National JSC Naftogaz of Ukraine, namely the conclusion of the Framework Agreement on the Supply and Delivery of Natural Gas and the Supplementary Agreement on Amendments to the framework agreement between the company and Vattenfall Energy Trading GmbH ... and Trafigura Trading (Europe) Sarl," the report said.
It is also noted that the estimated cost of gas that can be purchased from Vattenfall Energy is UAH 105.9 billion, and from Trafigura Trading – some UAH 100.9 billion.
As UNIAN reported earlier, Ukraine in late November 2015 refused to purchase natural gas from Gazprom. In general, in 2015 Ukraine doubled gas imports from Europe compared with 2014, up to 10.3 billion cubic meters, while reducing by 2.3 times the purchase of hydrocarbons from Russia.
Read alsoEU helps Ukraine design most efficient way to utilize underground gas storageIn 2016, Ukraine imported 11.1 bcm of gas exclusively from the EU, in particular, from Slovakia (9.1 bcm), Hungary (1 bcm) and Poland (1 bcm). In 2016, Naftogaz imported 8.2 bcm of gas from the European market, which is 11% less than in the previous year.
To procure gas in the EU, the state holding will use funds from the EBRD credit line worth $300 million. As reported earlier, Naftogaz established its subsidiary in Switzerland, Naftogaz Trading Europe SA, which will purchase gas in the EU market and deliver it to the parent company (to the border with Ukraine). To date, the circle of European suppliers of Naftogaz accounts for about 10 companies.