Ukraine plans to raise prices for gas storage: what rates are being proposed
30 April 18:36
The National Commission for State Regulation of Energy and Public Utilities (NKREKP) plans to consider a draft resolution on raising tariffs for the injection, withdrawal, and storage of gas in Ukrainian underground gas storage facilities at its meeting on May 5.
This was reported by the industry publication ExPro, according to "Komersant Ukrainian".
“Currently, tariffs for natural gas storage services (injection and withdrawal) are regulated in accordance with the ‘cost-based’ methodology. At the same time, the Law of Ukraine ‘On Natural Monopolies’ provides for the possibility of applying incentive-based regulation when setting tariffs for natural gas storage services,” the report states.
The relevant methodology for determining and calculating tariffs for gas storage facilities subject to regulated access, based on long-term incentive-based regulation, was approved by NEURC Resolution No. 403 dated March 17, 2026.
What is included in the tariffs
As analysts explain, the calculation of tariffs for natural gas storage services (injection, withdrawal) takes into account:
- the planned annual natural gas injection capacity of 8.08 billion cubic meters per year;
- the planned annual natural gas withdrawal capacity of 8.4 billion cubic meters per year;
- the planned average annual working volume of natural gas storage—11.27 billion cubic meters per year.
“The projected costs associated with the purchase of natural gas used to cover production and technological expenses, standard and specific losses (SSL) are determined taking into account SSL volumes of 68.6 million cubic meters and a projected natural gas purchase price of 23,581.1 UAH/thousand cubic meters.”
According to the NEURC, gas storage capacity is currently reserved primarily on a “day-ahead” basis and on a monthly basis, which hinders medium-term planning of gas storage operations and leads to increased equipment wear and, consequently, higher maintenance and repair costs due to the irregularity of operating modes.
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What coefficients are currently being proposed
To encourage long-term capacity reservations, it is proposed to approve the following coefficients:
- a coefficient that takes into account orders for storage services for one year (annual capacity, combined capacity) – at 0.9;
- a coefficient that accounts for capacity orders for the base season of injection and withdrawal – at 1;
- At the same time, it is proposed to leave the coefficients that account for service orders on a monthly basis (1.1) and on a daily basis in advance (1.2) at their current levels.
How much could tariffs increase?
Overall, the NEURC proposes to increase tariffs for UGS services:
- Gas storage – 0.45 UAH/thousand cubic meters per day (excluding VAT), compared to 0.4 UAH/thousand cubic meters under the current tariff.
- Gas injection – 360.02 UAH/thousand cubic meters (excluding VAT), 48% higher than the current rate of 253.03 UAH/thousand cubic meters (excluding VAT).
- Gas withdrawal – 360.02 UAH/thousand cubic meters (excluding VAT), 42% higher than the current rate of 243.52 UAH/thousand cubic meters (excluding VAT).
Following approval of the draft resolution, the NEURC will accept proposals and comments from market participants, which may result in adjustments to the final tariffs to be adopted.
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