2019 results: Gas demand in Ukraine fell by 7% primarily due to warmer weather compared to 2018

07.02.2020, 12:47:07

According to Ukrtransgaz, Ukraine decreased its gas consumption by 7% last year, with levels declining from 32.3 bcm in 2018 to 29.8 bcm in 2019.

Naftogaz has obligations to supply gas for households and a number of other segments on regulated terms set by the government (PSO). Gas supply to commercial users is liberalized. In May 2019, gas prices for households equalized with the declining import parity levels which supports the government’s plan to liberalize regulated segments of gas supply market starting from May 2020.

Naftogaz supplied nearly 15.4 bcm of gas under PSO including nearly 8.0 bcm to regional gas suppliers (both private companies and Naftogaz’ own retail subsidiary) to supply households.

Demand from households in the Kirovohrad region, where Naftogaz supplies gas directly to end consumers, declined by almost 20%. This significant reduction was primarily due to a warmer winter in 2019 than in 2018.

Gas suppliers in other regions (not part of Naftogaz group) cut their gas purchases for the needs of households by more than 25% in 2019 against 2018. The higher decrease in demand in those regions compared to Kirovohrad region could be due to gas supply companies procuring certain amounts of gas for the needs of households in the unregulated market.

Naftogaz supplied nearly 5.9 bcm of gas to heat suppliers under PSO. Gas demand for electricity generation grew by 44%, as several heat producers switched to gas instead of coal or alternative energy sources in 2019.

Gas consumption in 2019, bcm

Consumer category
2019
2018
+/- %
Retail gas supply companies (gazzbuts), including:
8.0
10.6
-25.0
private gas supply companies for resale to households
7.8
10.4
-25.2
direct supplies to households
0.2
0.2
-19.7
Heat producers, including:
7.4
7.1
5.3
for households
4.6
4.8
-4.1
for electricity generation
1.6
1.1
44.1
for other consumers
1.2
1.2
7.9
PSO total* (Naftogaz’ consumers)
15.4
17.7
-13.0
Naftogaz’ commercial users, including:
3.1
3.5
-15.0
Ukrtransgaz’ operating needs
2.4
2.6
-9.7
other commercial consumers
0.7
0.9
-16.4
Consumers of other suppliers
11.3
11.1
1.8
Non-PSO total* (consumers of Naftogaz and other suppliers)
14.4
14.6
-2.2
Total
29.8
32.3
-7.7
*According to CMU Resolution of 19.10.2018 #867 and CMU Resolution of 22.03.2017 #187 “On the approval of the Regulation on public service obligations imposed on the gas market participants in order to ensure public interest in the natural gas market” and pursuant to the Law of Ukraine “On the natural gas market”.

**Figures in the table and the text may differ due to rounding.


Communications Department
NJSC Naftogaz of Ukraine