Ukrainian gas market reform was on the agenda when Naftogaz CEO Andriy Kobolyev met members of the American Chamber of Commerce in Ukraine held on 26 July.
In his speech, Naftogaz CEO Kobolyev described the first stage of reforms in both the company and the gas market as fairly successful and noted that the Naftogaz had been transformed from a multi-billion loss maker into Ukraine’s most profitable company and the biggest contributor to the state budget.
Nevertheless, Kobolyev believes that the achievements of the first stage of reforms are not sufficient and need to be continued. The most urgent issues include so-called “black holes” in household gas supply segments and debts accumulated by heat generating companies. Excessive regulation and lack of transparency prevent private businesses from entering these segments.
The Naftogaz CEO also focused on the issue of TSO unbundling. According to Kobolyev, the ultimate goal of the unbundling process is to preserve the value the GTS is generating for the Ukrainian people, which means ensuring further gas transit when the current contract with Gazprom expires.
Kobolyev also looked into the details of the problematic introduction of daily balancing in Ukraine in the context of the current deficient version of the GTS Code. “Our key requirement for the Code is that any gas supplier or buyer should bear responsibility equal to the accessible amount of gas,” the Naftogaz CEO noted. He added that the current regulations created the dangerous possibility of uncontrollable and unpaid offtake from the GTS as in the case of the Odesa Port Plant.
“Chamber Member Companies support Naftogaz in its transformation into an efficient and profitable European energy corporation and its functioning in a transparent and independent way. We are ready to unite efforts with the Government and stakeholders to develop Ukraine’s energy market that will attract new players and international investors,” AmCham Ukraine president Andy Hunder said during the meeting.
Corporate Communications Department
NJSC Naftogaz of Ukraine