Kyiv, 10 September 2018 – JV Poltava Petroleum Company (PPC) has become the first private oil and gas producer to close a deal for natural gas supply using an over-the-counter (OTC) platform. The OTC platform started to operate at the Ukrainian Energy Exchange on September 7.
This is the first sale of natural gas performed using an organized OTC platform in Ukraine. This step, in turn, will allow Ukrainian gas producers and traders to expand the range of tools available for exchange trade.
An OTC platform is an electronic trading system based on best European experience, which allows participants to place their offers and search for offers from other contractors. An important advantage of the system is the automated search for contractors that guarantees the most efficient deal. In addition, unlike the auction system, the OTC platform can be integrated into a daily balancing system for natural gas. In addition, use of this platform contributes to setting a real price indicator for natural gas.
“The price of the August resource when the deal closed reached UAH 11,560. We believe that the platform’s operation will facilitate more active use of such tools by other market players as it directly impacts development of innovative and transparent transaction methods. This agreement was the first for our company as well as for all gas producers in Ukraine. We hope that this will become another step toward establishing a Ukrainian gas hub”, – noted Viktor Gladun, General Director of PPC.
As previously reported, PPC was the first company to launch and begin sales of hydrocarbons using its own electronic trading platform. In January 2017, PPC sold the first batch of natural gas on the Ukrainian Energy Exchange.