Baku Energy Forum - Ukraine begins to store SOCAR's gas

Ukraine begins to store SOCAR's gas


Ukrainian subsidiaries of France's Engie and Azerbaijan's SOCAR have started pumping gas into underground storage facilities of PJSC Ukrtransgaz.

SOCAR Ukraine Trading House has started pumping natural gas into the Ukrainian underground storage facilities since August, registering it in the “customs warehouse” mode. It allows storing gas for up to three years without the payment of taxes and customs duties.

Engie received gas from its parent trading structure, and SOCAR Ukraine trading house, bought gas from the Polish gas company PKN Orlen, which debuted on the Ukrainian market, according to Trend.

This is the first time in history when European gas will be stored in Ukraine in a licensed customs warehouse.

Previously, Ukraine amended its customs regulations to allow international companies to store their gas in 10 major underground reservoirs for three years. Under the earlier rules, the tax-free period was only available for first 31 days.

The main activity of SOCAR Energy Ukraine, which was opened in 2008, is to improve the network of petrol filling stations and organize wholesale of petrol and oil products in the territory of Ukraine. Today, some 50 specialists are employed at SOCAR Energy Ukraine.

SOCAR is the only producer of petroleum products in Azerbaijan, and operates more than 370 petrol stations in Switzerland, Georgia, Romania and Ukraine. Currently, the company has 60 filling stations in Ukraine.

SOCAR is a wholly state-owned national oil company headquartered in Baku, Azerbaijan. The company produces oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.