In August-October Naftogaz procured 1.8 billion cubic meters of natural gas from Axpo Trading AG, CEZ, a.s., Engie SA, Eni Trading & Shipping S.p.A., RWE Supply & Trading GmbH and Uniper Global Commodities SE within the scope of the second round of utilization of Gas Purchase Renewable Credit Facility funds provided by the European Bank for Reconstruction and Development (EBRD).
Weighted average price of the contracts amounted to $185 per 1 thousand cubic meters at delivery point.
Total value of 30 awarded contracts amounted to $334 million, of which $300 million were financed through the credit facility and $34 million – from Naftogaz’s own funds.
All 6 suppliers were identified as eligible by the EBRD prequalification procedure concluded in July.
From December 2015 till March 2016 Naftogaz has procured 1.7 billion cubic meters of natural gas from 5 suppliers by utilizing the EBRD Credit Facility.
The EBRD Renewable Credit Facility of $300 million was opened in October 2015 and was intended for natural gas purchase at the Western border of Ukraine. One of the conditions of the EBRD loan was the implementation of the Action Plan on corporate governance reform in Naftogaz by the government of Ukraine.
The EBRD Facility is a renewable loan for a period of 3 years. During this period Naftogaz may partially repay the loan and then again re-borrow the funds to finance gas purchases from the EU. (Energyland/Business World Magazine)
