Natural gas prices on the Ukrainian market at the end of Friday, April 16, reached their highest values in the last two years - since the beginning of February 2019. Gas prices are close to UAH 9,000 /thousand cubic meters. This is evidenced by the data ExPro .
So, at the end of the day on April 16, the resource of the current month on the Ukrainian market was traded at prices of 8900 - 9000 UAH /thousand cubic meters (including VAT). Gas prices in UGS facilities were 8,850 - 9,000 UAH /thousand cubic meters (including VAT). At the same time, the resource in May was traded at 8850 - 8990 UAH /thousand cubic meters (including VAT).
Among the reasons for the sharp rise in prices in Ukraine is the growth of quotations on European hubs, where prices reached a three-month high. Gas in Europe is rising in price against the background of rising prices for CO2 emissions, as well as under the influence of cold, like for April, weather. Gas reserves in European underground storage facilities continue to decline, UGS facilities are less than 30% filled (they store about 31 billion cubic meters of gas, which is 26 billion less than last year).
Forecasts for a reduction in LNG supplies to Europe in the summer also contribute to price increases. A significant portion of LNG is expected to be directed to Asia as a premium market. Empty storage facilities amid reduced LNG supplies may lead to gas shortages in Europe.
Gas in Ukraine is still cheaper than in the rest of Europe, but only slightly. So, the April resource on Friday was trading lower than the spot in Europe by about 1 euro /MWh (400-500 UAH /thousand cubic meters), while the resource of May was lower than the futures by 0.7 euro /MWh (300 UAH /thousand cubic meters). This leads to the fact that the import of gas to Ukraine is economically inexpedient, since you also have to pay for the transportation of gas in the Ukrainian GTS. Taking this into account, importers are actively buying gas from Ukrainian producers, which also contributes to the growth of prices for natural gas on the domestic market.