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Home Oligarchs

Conflict between Centrenergo and Naftogaz: will thermal power plants be turned off?

by Mattew Couper
16/11/2022
in Oligarchs
Reading Time: 3 mins read
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Centrenergo and Naftogaz conflict: Will Trypilska TPP be shut down?

Unauthorized gas extraction from the GTS can lead to more serious consequences, writes ZN.

Three weeks after the announced but canceled order of Naftogaz to cut off gas from Trypilska TPP, the situation did not get a solution, but created a huge debt between three other companies that were not involved in the scandal.

At a meeting of the temporary investigation commission of BP due to the crisis in the energy market of Ukraine on November 11, the risk of a multi-million dollar debt of Kyivoblgaz JSC to the GTS Operator of Ukraine was discussed. The reason is that Naftogaz does not want to supply gas to Trypilska TPP (Centrenergo) and does not conclude an agreement with the company. But due to the critical role for the Kyiv region, no one will allow stopping the station or disconnecting it from gas.

The conflict between Centrenergo and Naftogaz

As a result, Trypilska TPP continues to withdraw gas, and its cost is recorded as a debt of the regional operator of distribution networks - Kyivoblgaz to the GTS Operator of Ukraine. Naftogaz stands nearby in all white out of 11 billion cubic meters. m of gas in storage.

According to the ex-head of the OGTSU Sergey Makogon, the Trypilska power plant consumes up to 3 million cubic meters daily. m of gas.

“For the first 7 days of November, the withdrawal is almost 20 million cubic meters. m, which is almost UAH 600 million, and in a month TPP withdrawals can reach 90 million cubic meters. m in the amount of UAH 2.7 billion,” Makogon emphasizes.

Obviously, neither Kyivvoblgaz nor OGTSU, as tariff companies, have the funds to buy gas for almost UAH 3 billion for Trypilska TPP every month. Especially if it is only about giving Naftogaz and Centrenergo time to resolve mutual claims and finally sign a gas supply agreement.

But unauthorized gas withdrawal from the GTS can lead to more serious consequences than the banal accumulation of mutual debts, which will still fall on the state. It is more important to have a resource for the safe operation of the GTS, because in order to maintain the proper pressure in the system, there must be gas, which is now taken by the Trypilska TPP.

The logical and expected step of the government is to finally apply the mechanism of assigning special duties (PSO), when Naftogaz becomes the supplier of critical facilities. It is for this purpose that gas is downloaded, for the purchase of which the company draws money from the state, the entire gas market, and even from the GTS Operator. Currently, an obstacle to the supply of gas on the terms of the PSO is the imminent expiration of the signing of the agreement on the restructuring of consumer debt to Naftogaz.

According to Deputy Energy Minister Nikolai Kolesnik, the ministry is already preparing a resolution to extend the term for concluding agreements with Naftogaz. This will help to regulate the risk of oblgas shutdown in the regions of hostilities. So there is hope that officials understand the cost every day.

In his article for ZN.UA, Nikolay Teslya, a power engineer and manager, wrote that Naftogaz has no money, there is not enough gas in storage facilities, positions oligarchs are stronger than ever, and international partners categorically refuse to finance the hole into which the NAC has become without a return to civilized corporate governance practices. Read about this in the material - Naftogaz must be destroyed«.

DOSSIER: Anatoly Shkriblyak: a small giant of big corruption. PART 1

Vitaly Kropachev: what is the coal “watcher” of the presidential “family” hiding? PART 1

London-based hedge fund VR Capital blocks Naftogaz debt restructuring - FT

Naftogaz does not allow representatives of the State Audit Service: BP’s Interim Commission requires an audit of the company and its subsidiaries


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