The Energy Community Secretariat sent a position paper on gas market design to Ukrainian stakeholders. The paper provides market design options that would ensure fair competition in the Ukrainian gas market and provide the needed liquidity for future gas exchange.

Over the last years, Ukraine has achieved a lot in the area of gas market liberalisation and the development of a stable gas hub. However, there are still certain elements that put the country’s progress at risk. One of these obstacles is Naftogaz, the country’s gas incumbent,  which has absorbed the ‘unlocked’ nationally produced gas volumes without other market participants having access to it.

The Secretariat has recommended a gas release programme which would allow all market participants to have access to the gas volumes by ensuring that they are traded on equal and transparent market segments, operated by the Ukrainian Energy Exchange. These volumes would provide the crucial liquidity needed on the gas market to create a stable Ukrainian gas index, therefore increasing the benefits for Ukrainian gas consumers.

Since the country’s own production will be traded on transparent terms, the Ukrainian gas price could be lower than the current one. Moreover, due to its size, the Ukrainian gas hub could become one of the top European reference hubs.

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Press release

EU4Energy programme