Ukraine Opens Gas Exports for Private Producers for First Time Since 2022
The Cabinet of Ministers on Oct. 7 approved partial exports of domestically produced gas, letting private producers sell up to 15% of the previous month's output abroad through exchange auctions. The decision follows a gas surplus in the commercial segment, a wide gap between Ukrainian and European prices, and storage levels above the government's target.
On October 7, Ukraine's government lifted the ban on natural gas exports, which had been in place since Russia's invasion in 2022, according to ExPro, citing its own sources. Private producers will be permitted to sell up to 15% of the gas they extracted in the previous month to foreign buyers. The mechanism excludes state-controlled major producers.
Discussions about opening exports intensified in the summer, with the government revisiting the issue in September after postponing it until spring 2027. Market participants attributed the need to restart exports to a gas surplus, a significant price gap between Ukrainian and European markets, and producers' need for funds to rebuild and safeguard their facilities.
The Cabinet of Ministers adopted a plan on September 30, instructing the Ministry of Energy to establish legal and organizational conditions for controlled export of up to 15% of domestically produced gas. This plan aimed to boost the gas production sector by attracting investment, with a target date of September 2026 for opening exports.
Private companies produced over 370 million cubic meters of natural gas in August 2026, while gas prices in Ukraine were 2.5 times cheaper than in Europe. Gas stored in Ukraine's underground facilities reached 15.8 billion cubic meters, exceeding the government's required 1.2 billion cubic meters by November 1. The new rule takes effect from the day of its publication and applies annually from March 1 to November 30, excluding gas produced under separate production sharing agreements and market participants with special obligations.
The Ministry of Energy will approve eligible companies and their export volumes each month based on actual gas supplied to Ukraine's gas transmission system. Gas will be sold at specialized commodity exchange sessions, likely the Ukrainian Energy Exchange, with only non-resident companies able to purchase. The highest bidder wins, and sellers must specify the volume, starting price in euros per megawatt-hour, and delivery point on Ukraine's border with EU countries or Moldova.
Unused monthly limits are not carried over, and gas sold on the exchange can be exported in the same month or the following two months. Gas exports can be temporarily suspended in a crisis by a decision of the Crisis Committee under the Ministry of Energy.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
