17:05 Nov. 3, 2016
European hub prices soar amid U.K. storage woes, cold weather
The biggest bull run this decade in European gas markets has failed to sway Ukraine from its year-long boycott of Russian supplies of the fuel.
NAK Naftogaz Ukrainy, the state-run energy company, is "very happy" with the price it's getting even if it "would always like it to be lower," Chief Executive Officer Andriy Kobolyev said in an interview in Bloomberg's New York headquarters. The Kiev-based company won't buy gas from Moscow-based Gazprom PJSC under current terms no matter the Russian price, he said.
"Comparing now the proposals we are seeing from European companies and our expectation of what the Russian price would be, the difference is small," he said, without disclosing any prices.
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European gas has rallied more than 80 percent after hitting a six-year low in August amid an extended shutdown of Britain's biggest storage site that is set to boost the need for imports, as well as a jump in rival power-station fuel coal. That has made it more expensive for Ukraine to replace gas from Russia linked to oil prices amid a dispute over pricing and supply terms.
Naftogaz hasn't bought any Russian gas since November 2015, with Gazprom supplying 18 percent of its consumption that year, according to Ukrainian data. Transit to Gazprom customers in Europe has continued as normal, and Ukraine relied on its own production and so-called reverse flows through pipelines from Europe to offset supplies from the east.