Ukraine must liberalize the gas market as soon as possible to attract Ukrainian and European traders and industrial consumers for imports. Without this, resource shortages and a lack of funds could jeopardize preparations for the upcoming heating season.
This is reported by Business • Media
This was stated by Volodymyr Omelchenko, director of energy programs at the Razumkov Centre. He emphasized that “
“to timely fill the underground gas storage facilities, it is necessary to import gas at a level of 25 million cubic meters per day throughout the entire injection season. This will require about €2 billion. On its own, “Naftogaz of Ukraine” will not be able to attract such an amount”
.”
Problems of the Current Gas Market Model
The expert stressed that the current market model, under which “Naftogaz of Ukraine” performs special obligations (PSO) and sells gas at reduced prices to the population and enterprises, has exhausted itself. As a result, “Naftogaz” is forced to import gas for the population at a loss, which could negatively impact the stability of supplies.
Omelchenko is convinced that the only way out of this situation is to involve other participants in gas imports, which requires the liberalization of the gas market. He also suggested revising the approach to the use of state extraction resources to stabilize prices for the population.
The application of open market mechanisms will allow Ukraine to ensure the stability and availability of gas, as well as avoid potential crisis situations in the future.