Feel the difference: the government has adjusted special gas prices
31 March 2025 08:49
The Cabinet of Ministers of Ukraine has decided to entrust Ukrnafta with special responsibilities for the supply of natural gas of its own production at prices set by the government. This was reported by the company, according to "Komersant Ukrainian".
We are talking about Resolution No. 356 of March 28, 2025, by which the government amended the Regulation on the imposition of special obligations on natural gas market participants to ensure the public interest in the functioning of the natural gas market, in particular by expanding the range of these entities to include Ukrnafta. The resolution is published on the government portal and comes into force on April 1.
Ukrnafta said that in view of this decision, the company will make appropriate changes to its financial plan and investment program.
This government resolution extends the special obligations provision (PSO) in the natural gas market until October 31, 2025, which was supposed to expire on April 30. Also, according to the resolution, Ukrnafta will sell gas at a more favorable price for the company compared to Ukrgasvydobuvannya and Chornomornaftogaz, which are also subject to special obligations.
At what special prices will gas be sold
The document states that JSC Ukrgasvydobuvannya, PJSC Ukrnafta and State Joint Stock Company Chornomornaftogaz are obliged to sell natural gas of their own production on a monthly basis until October 31, 2025, and NJSC Naftogaz of Ukraine is obliged to buy such natural gas:
– from JSC Ukrgasvydobuvannya and State Joint Stock Company Chornomornaftogaz at a price of UAH 7,240 including value added tax per 1,000 cubic meters of gas;
– from PJSC Ukrnafta from April 1, 2025 to October 31, 2025 (inclusive) at a price of UAH 12,000 including value added tax per 1000 cubic meters of gas.
This gas will be used to form a resource for household consumers, gas distribution system operators, electricity producers and heat producers.”
In addition, the price of gas under the PSO for thermal power plants (TPPs) and combined heat and power plants (CHPs) that produce electricity in the condensation cycle has been increased from UAH 10.95 thousand to UAH 14 thousand, and for CHPs that produce electricity in the heat cycle – from UAH 16.5 thousand to UAH 18 thousand.
The Resolution also divides gas piston and gas turbine plants into two categories: for those that produce electricity exclusively, the price of gas was reduced from UAH 16.5 thousand to UAH 14 thousand, and for those that produce electricity and heat in a combined manner, the price was increased from UAH 16.5 thousand to UAH 18 thousand.
Simultaneously with the PSO extension, the government resolution shortens the term of the provision on the sale of gas to gas distribution system operators by Naftogaz’s subsidiary, Gas Supply Company Naftogaz of Ukraine LLC, at the PSO price: while until recently this provision was in force “during the martial law period, as well as within six months after its termination or cancellation,” now it is valid until October 31, 2025.
What explains these changes?
According to the specialized publication ExPro, in October, natural gas prices for consumers receiving it under PSO, primarily electricity producers, may be revised. While gas prices for households are still protected by a moratorium on price increases until the end of martial law, they are not for electricity producers.
The expansion of the circle of suppliers of domestically produced gas at special prices can also be explained. The Russian attacks in February and March affected not only production volumes but also, apparently, the functioning of the sites where this production was carried out.
In addition, after the Russian attacks, Ukraine faced problems with preparing for the next heating season and, accordingly, the need to increase purchases abroad. According to a recent meeting of the Verkhovna Rada Committee on Energy, Housing and Utilities, Naftogaz Group Board Member Dmytro Abramovich, Ukraine needs to import 4.5-4.6 billion cubic meters of natural gas by the beginning of the next heating season, i.e. by November 2025.
These are record gas supplies from the western direction for Ukraine. Previously, the maximum imports from Europe amounted to only 1 billion cubic meters.
Ukraine has already started preparing for the next heating season
By mid-October 2025, at least 13 billion cubic meters of gas should be in Ukrainian gas storage facilities to ensure the successful passage of the 2025-2026 winter season.
As reported by [komersant, last week the European Bank for Reconstruction and Development approved a loan of up to €270 million for Naftogaz. These funds will be used to purchase natural gas for the next two heating seasons.
Another €140 million in grants from Norway, which will also come through the European Bank for Reconstruction and Development, will be used to purchase gas and increase its reserves in underground storage facilities.
Naftogaz of Ukraine has already signed two contracts with the Polish company ORLEN for the supply of a total of about 200 million cubic meters of liquefied natural gas. DTEK’s D.Trading is also involved in foreign gas supplies.
