DTEK Starts Importing Gas from Europe
OREANDA-NEWS. DTEK Trading LLC started importing natural gas from Europe. DTEK plans to import up to 100 million cubic meters of natural gas in July. Throughout the year import volumes will be set based on economic expedience and conditions in the Ukrainian and European gas markets.
DTEK is one of Ukraine’s largest energy traders. The company’s coal is used at power plants and industrial enterprises in Europe, Asia, North and South Americas, and Africa. Electricity is supplied to Hungary, Slovakia, Romania, Poland, Moldova and Belarus. DTEK is a full-fledged member of the European energy system and the European Federation of Energy Traders (EFET). The Company cooperates with the key players of the European energy market: Alpiq Energy SE (Czech Republic), Axpo Trading AG (Switzerland), E.ON Energy Trading (Germany), EDF Trading Limited (UK), Gazprom Marketing & Trading (UK). In order to ensure transparent sales to the end consumers in Europe, the company established DTEK Trading SA, a subsidiary in Switzerland.
DTEK entered the oil and gas business due to demand from its own generation facilities and SCM Group enterprises, amounting to about 6 billion cubic meters per year. In early 2013, the Company reached an agreement to purchase shares of Private JSC Naftohazvydobuvannya, the largest private gas production company in Ukraine, which can extract up to 1.5 billion cubic meters of natural gas. DTEK Trading obtained a five-year license for natural gas supply in July 2012, which secured its active position in internal and external gas markets.
DTEK’s Development Strategy to 2030 envisages the creation of a diversified energy company operating both domestically and abroad. This means the company will trade energy products, including gas, both on exchanges and under direct contracts, including those with foreign partners.
“Our goal is to improve business efficiency and the competitive strength of our products and services,” said Andrey Favorov, DTEK’s Commercial Director. “Having built up an efficient vertically integrated chain in coal, we are now turning to gas, as DTEK consumes over 3 billion cubic meters of natural gas per year. Currently, European gas prices are lower than those of Naftogaz of Ukraine, so we are planning to not only produce our own gas, but also to import it. We welcome an open and constructive dialogue.”
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