Russian gas giant OAO Gazprom says there are no grounds to reduce natural gas purchases by NJSC Naftogaz Ukrainy in 2012 and 2013 from the amount sealed in the gas accords signed in 2009, therefore Naftogaz has been invoiced $7.09 billion for having taken 16.7 billion cubic meters (bcm) of gas less than contracted.
“As no supplemental agreement in respect of the volume of supplies in 2012 had been signed, we supplied gas pursuant to the principal terms and conditions of the gas supply contract in 2012, which provided for the supply of 52.0 bcm to Naftogaz in 2012,” reads a program for the issuance by Gazprom of loan participation notes, available to Interfax-Ukraine.
The Russian gas giant reports that should the coefficient sealed in the gas accords be taken into account, the minimum amount of gas subject to the ‘take-or-pay’ provision in 2012 was 41.6 bcm, while actual shipments totaled 24.9 bcm.
According to the program, the invoice is based on the factual annual weighted average price for 2012.
“In May and August 2011, Naftogaz sent us several requests to revise the price and volume of our supplies in 2012, and in May and June 2012 various representatives of Naftogaz publicly stated that Naftogaz was going to purchase lower volumes of natural gas than stipulated by our contract with Naftogaz,” reads the program.
“In November 2009, we signed a supplemental agreement to the gas supply contract which provided for natural gas supply to Ukraine in the amount of 33.75 bcm in 2010 and waived penalties for low intake of natural gas by Ukraine in 2009 given difficult economic conditions caused by the global economic crisis. In April 2010, the contract was revised to provide for the increase in gas supply to Ukraine up to 36.5 bcm in 2010. In 2011, we supplied 44.8 bcm of natural gas to Ukraine,” continues the document.
The document doesn’t mention information about natural gas supplies to Dmytro Firtash’s OstChem Holding Limited, which, according to Ukrainian statistics, imported about 8 bcm of gas from Russia.
The program reports that for the nine months ended September 30, 2012, Gazprom sold 24.6 bcm of gas. Yet, the document notes that gas sales to the Former Soviet Union countries are primarily made directly by Gazprom, though it also makes sales through Gazprom Export and its subsidiaries. In the nine months Gazprom also bought 26.8 bcm of gas from Central Asia and Azerbaijan, and delivered 25.3 bcm outside Russia.
The program also says that in December 2010, Gazprom signed a memorandum with Naftogaz providing for the establishment of a 50:50 joint venture to explore, evaluate and develop coal bed methane in Ukraine. Based on the memorandum, Gazprom is currently negotiating the terms of this joint venture. In September 2011, Gazprom signed an agreement to jointly develop the Palasa structure located in the Russian and Ukrainian sections of the Black Sea. “We are considering establishing a joint venture with Naftogaz for this project,” Gazprom said in the program.
Gazprom also said that in 2012 its subsidiary, Gazprom Neft, entered the Ukrainian market: “In 2012, four Gazprom Neft branded gasoline stations started operation under franchising contracts in Ukraine,” reads the program.
As reported, natural gas imports to Ukraine last year decreased by 26.5%, or 11.864 bcm, compared to the previous year, to 32.939 bcm, the Energy and Coal Industry Ministry said. Gazprom in January 2013 reported last year’s gas supplies to Ukraine at 33 bcm, including purchases by OstChem.
