Ukrainian experts are discussing a mechanism that could provide financial support to the gas production industry amid ongoing Russian attacks on infrastructure. Oleksandr Trokhymets, Vice President for Energy at ICC Ukraine, stated that the controlled export of the volume of gas not needed by the domestic market at a given time could provide producers with additional funds to repair damaged facilities and maintain their own production. According to him, the logic here is directly borrowed from the electricity market: if part of the produced resource is not yet demanded by domestic consumers, it is advisable to sell it abroad.
Analogy with the Electric Power Industry
Trokhymets explained that in the case of gas, it is appropriate to apply the same logic as in the electricity market. “Of course, if there is such an opportunity, then, by analogy with electric energy, a certain volume of produced gas that is currently not needed for consumption inside the country can be exported,” he noted. The key argument, according to the expert, is that Russian strikes are aimed not only at electrical capacities, but also at gas production facilities, so the industry needs resources for recovery.
Strikes on Gas Production and Funding Deficit
According to Trokhymets' assessment, Russian attacks create additional costs for production companies to restore damaged capacities, while opportunities to obtain the necessary financial resources solely on the domestic market are currently limited. “You are hardly going to earn this money on the domestic market right now,” the expert emphasized. Under these conditions, selling a limited part of the resource abroad, according to him, can provide companies with the working capital necessary to keep the industry running and continue production.
How Large Are the Possible Export Volumes
At the same time, ExPro Consulting natural gas market analyst Mykhailo Svyoshch drew attention to the fact that the volumes permitted for export are small compared to Ukraine's consumption. According to his estimate, we are talking about approximately 50 million cubic meters per month, and even 100 million cubic meters of export over two months is less than one day of peak gas consumption during the heating season. Thus, export does not disrupt the domestic balance, but can provide the industry with targeted funds.
What This Means for the Industry
The combination of these assessments indicates that the controlled export of excess gas is viewed not as a replacement for domestic consumption, but as a targeted financing instrument: it allows production companies to obtain working capital for repairs and protection of capacities at a time when domestic prices and demand do not provide a sufficient financial effect. Experts emphasize that the mechanism works on the same principle as electricity exports — by selling precisely that part of the resource that is currently not demanded within the country.
