Ukrnafta Selling Liquefied Gas to “Privat” Companies at Below-Market Prices

At the auction on December 18, PJSC Ukrnafta sold all the 21,38 thousand tons of liquefied gas at ₴17.700 per 1 thousand tons. According to enkorr, that price was 6.7% (₴1288) cheaper than the one at which PJSC Ukrgasvydobuvannya had realised its resources a day before (₴18.988).

The batches in the amount of 19,480 tons were acquired by a company affiliated with the PrivatGroup, while the railway norms (1900 tons) were traditionally purchased by other market players. Along with Ukrnafta, on December 18, JV Poltava Petroleum Company conducted its auction. It sold the resources at the price of ₴19.200 per 1 thousand tons. The Geo Alliance’s price totalled ₴18.756 per 1 thousand tons.

As for PJSC Ukrgasvydobuvannya, the delivery time is December 25; while for PJSC Ukrnafta, the date is January 20. Unlike Ukrgasvydobuvannya, Ukrnafta has been ignoring the possibility of carrying out electronic auctions as well as the delivery within a week for already the second year. Instead, it continues selling LNG via its “voice” auctions once or twice a month.

JPJSC Ukrnafta produces liquefied fuel at three refineries in Chernihiv and Ivano-Frankivsk regions. In 2018, the production of liquefied gas amounted to 110 thousand tons (-5%). The company is selling gas at “voice” auction once or twice a month, and 90% of its total amount is purchased by a company affiliated with minority shareholders of PrivatGroup.