Ukrainian privately owned utility DTEK has started importing natural gas from Europe into Ukraine and plans to import up to 100 million cubic meters of gas in July, the company said Thursday.
DTEK Trading, the Switzerland-based trading arm of DTEK, said that import volumes for the remainder of 2013 would be set based on the "economic conditions in the Ukrainian and European gas markets."
Ukraine opened up its gas import market to private companies several years ago.
A senior government official said last week that anyone can import gas into Ukraine.
Volodymyr Ignashchenko, adviser to the minister of natural resources, said at a meeting in London that Ukraine had effectively totally liberalized its gas market.
Ukraine is looking to reduce its dependence on Russian gas imports and has started importing gas from Europe -- first through reverse flows from Poland and Hungary, and with a view to beginning imports from Slovakia.
DTEK said it entered the gas trade business due to demand from its own generation facilities.
In early 2013, the company reached an agreement to purchase shares of Naftohazvydobuvannya, the largest private gas production company in Ukraine, which can produce up to 1.5 billion cubic meters/year of gas.
DTEK also obtained a five-year license for gas supply in July 2012, "which secured its active position in internal and external gas markets." "Our goal is to improve business efficiency and the competitive strength of our products and services," said Andrey Favorov, DTEK's commercial director.
"Having built up an efficient vertically integrated chain in coal, we are now turning to gas, as DTEK consumes over 3 Bcm/year of gas," Favorov said.
"Currently, European gas prices are lower than those [charged by] Naftogaz, so we are planning to not only produce our own gas, but also to import it. We welcome an open and constructive dialogue."
