Ukraine confirms limited gas export allowances for private producers

Ukraine will allow some domestic natural gas producers to export a portion of their output on a monthly basis from March to November of each year, the country's energy ministry said Oct. 12.

Under the new measures, private producers can export up to 15% of their monthly production from March 1 until Nov. 30 of each year, the ministry said.

"In the period from Dec. 1 to Feb. 28, natural gas will not be exported," it added.

According to a copy of the export procedure seen by Platts, part of S&P Global Energy, export volumes are determined on a monthly basis, and approved exporters cannot carry over any unused export volumes to sell later. Moreover, sellers must export any gas sold in a given month within the following two months at the latest.

The move confirms reporting last week from Platts, part of S&P Global Energy, that the government agreed to loosen restrictions on gas exports, which had been banned since 2022.

"The implementation of the decision does not affect meeting the needs of the domestic market in the autumn-winter period," the ministry said in the Oct. 12 statement.

Ukraine has nearly 15.8 billion cubic meters of gas in storage, according to the ministry. This is well above an earlier target to stock some 14.6 Bcm of gas ahead of winter.

The ministry also said the decision includes an avenue for "prompt termination of exports" if there is a supply threat or domestic market crisis.

"Meeting Ukraine's domestic needs is a priority of the Government," the ministry said.

The decision to allow some gas exports from Ukraine comes as European gas prices sit near recent highs with winter approaching and supply disruptions linked to the war in the Middle East persisting.

Platts, part of S&P Global Energy, assessed the month-ahead Dutch TTF gas price at €81.63/megawatt-hour on Oct. 9. The benchmark is 152% higher than a year earlier.