You're reading: Parliament permits exports of Ukrainian gas

The Ukrainian parliament has permitted exports of Ukrainian natural gas, which will allow National JSC Naftogaz Ukrainy to fulfill an agreement with Poland's PGNiG on gas supplies to the country.

A total of 274 lawmakers supported amendments to the law on the basic functioning of the natural gas market regarding gas-extracting companies.

The law is expanded with a requirement permitting Naftogaz Ukrainy and its subsidiaries to export natural gas extracted in Ukraine in volumes approved by the Ukrainian Energy and Coal Industry Ministry.

In addition, the law permits gas-extracting companies to use gas for their technological needs and the production of liquefied gas.

As reported, Naftogaz stopped exports of Ukrainian gas via the border point at Zosin (near Hrubieszow) on January 1, 2011.

The cutoff was due to Ukrainian law, which requires that Naftogaz Ukrainy sell 90% of the gas produced in Ukraine to domestic customers.

However, Ukraine is obliged to supply 180 million cubic meters of gas to Poland in 2011 under a gas agreement between Polish state oil and gas company PGNiG and Naftogaz, which was signed on October 26, 2004. The Polish company said it planned to enforce the terms of the contract.