MET Group provides gas supply services to end customers in Ukraine
MET has been an active participant of Ukraine’s gas market for several years and the company now seeks to extend its services to end customers after having been granted a gas trading licence in the country. Ukraine’s gas market is characterized by continuous restructuring.
As a European energy trading company, MET Group is an active participant in natural gas, power and oil markets in Europe, and the company has been selling gas for several years at cross-border points on the Ukraine–Hungary and Ukraine-Slovakia borders. It is also a qualified partner of Ukraine’s state-run Naftogaz. The company established a subsidiary, MET Ukraine, in 2016, which complies with all local legal requirements and was granted a gas trading licence in July 2017.
“This permit is placing us among companies that can supply end consumers in Ukraine. The establishment of a local company and being granted a local gas trading permit were only the technical conditions, the rest will depend on specific agreements and prices. We also regard the country’s huge gas storage and transit capacity as future business opportunities,” MET Ukraine shareholders representative Attila Szaniszló said.
The Ukrainian market is attractive for a number of reasons: the country has the biggest gas storage capacity in Europe, and it is a significant market in itself. Gas consumption is also high, even though the economic crisis and geopolitical conflicts in recent years have led to a slight decline. Local gas production is also significant, and huge amounts of natural gas are flowing across the country as well.
The Ukrainian market is characterised by constant restructuring, with radical changes seen in gas supply sources and routes. Since 2016, Ukraine has bought natural gas only from the West and its energy market regulations are being adapted to meet Western European standards. “Entering Ukraine was a logical step for MET, since MET Group is already present in the markets, including Hungary and Slovakia, where Ukraine is buying its gas. We see several possible areas of interest and a lot of untapped potential, but at the same time we must be prepared to manage existing risks,” Attila Szaniszló added.
About MET Group
MET Group is a leader in the European energy marketing sector. Headquartered in Switzerland, MET is an active participant in the European natural gas, power and oil markets. MET is present in 13 countries (Austria, Croatia, Hungary, Lithuania, Romania, Russia, Serbia, Slovakia, Spain, Switzerland, Turkey, the UK and Ukraine) through subsidiaries, 27 national gas markets and 19 international trading hubs, with a significant end-consumer presence in Croatia, Italy, Hungary, Romania, Slovakia, and Spain.