Ukrnafta extends contract with Dniproazot on better terms News
Ukrnafta extends contract with Dniproazot on better terms
Ukrnafta extends contract with Dniproazot on better terms

Ukrnafta has extended for 3 months the contract with Dnirpoazot during which time Ukrnafta will continue supplying natural gas for production of ammonia. The extension of the contract will afford Dniproazot sufficient transition period to receive the permits required to produce ammonia independently and avoid any operational disruptions, which may lead to substantial negative social and economic consequences in the region.

The new ammonia price under the extended contract is better than the price under the previous arrangement. The net backed gas price for Ukrnafta under the new formula is also higher than an alternative price offer from Naftogas.

Ukrnafta and Dniproazot have agreed to set up a joint commission during the transition period to finalize the arrangements related to the termination of the contract and handover of the leased property and employees. During this period, Ukrnafta will continue evaluating options for long-term gas supply to Dniproazot, Nafotgas or other industrial customers.




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