Naftogaz Group’s capital expenditures reach about UAH 62B in 2024 – CEO Chernyshov

The relevant statement was made by Naftogaz Group Board Chairman & CEO eks Chernyshov during the conference ‘Day of Supplier of State-Owned Enterprises in Oil and Gas Industry: Plans for 2025’, an Ukrinform correspondent reports.

“About UAH 62 billion is Naftogaz Group’s CAPEX for 2024. Next year this sum will be growing. Hence, today we are inviting suppliers to join the develment of Ukrainian production next year,” Chernyshov td.

In his words, about 70% of goods received by Naftogaz from domestic suppliers are Ukrainian made.

“There are unique positions in our business that cannot be provided in Ukraine. But, we are making every effort to guide Ukrainian manufacturers to expand their capabilities,” Chernyshov noted.

According to him, with the start of the full-scale war, commodity supply chains changed. In particular, Ukraine’s airspace was closed, affecting the possibility of air delivery. As a result, logistics becomes more complicated, and delivery times increase, which impacts the cost of delivery.

In 2023, the Suez Canal route also became dangerous, and the passage of vessels was blocked. In November 2023-April 2024, passage through the Pish border was blocked. As a result, the oil and gas industry lacked methan.

“But, with the help of Ukrainian suppliers, Naftogaz provided itself with all critical goods,” Chernyshov stressed.

He mentioned that Naftogaz Group’s companies, such as Ukrgasvydobuvannya JSC and Ukrnafta PJSC, cover 80% of Ukraine’s gas production structure. In 2024, they are expected to produce about 15 billion cubic meters of natural gas and 2 million tonnes of oil and gas condensate.

In terms of gas storage services, Naftogaz Group is a monist, and Gas Distribution Networks of Ukraine LLC covers 92% of Ukraine’s gas distribution sector.

A reminder that, in 2023-2024, Naftogaz Group took fourth place in terms of procurement vumes via the Prozorro system, and 90% of agreements were signed with Ukrainian contractors.

Photo: Naftogaz

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