Dniproazot signs gas supply contract with Ukrnaftoburinnia for UAH 457 mln

JSC Dniproazot has signed a contract to supply gas for UAH 457.217 million with PrJSC Ukrnaftoburinnia.

According to a report of Dniproazot in the information disclosure system of the National Commission for Securities and the Stock Market, the supervisory board of the company approved the signing of the contract on November 6, 2018.

As reported, the company on November 5 said that Dniproazot has resumed operation of its nitric workshops and stopped staying idle over the sharp rise in gas prices.

Since April 2018, PJSC Ukrnafta stopped processing gas at the facilities of Dniproazot, transferred to its sale through the exchange and under bilateral contracts. Ukrnafta previously leased the capacities of Dniproazot for processing its own gas into mineral fertilizers. Ukrnafta sold ammonia produced in this way to Dniproazot.

Dniproazot on June 15 announced that the plant will stay idle, but on July 20 the operation of chloride workshops was resumed.

Dniproazot produces urea, ammonia, sodium hydroxide, liquid chlorine and hydrochloric acid. It is part of the Privat Group.

Ukrnaftoburinnia is one of the largest private gas companies in Ukraine. Since 2010, it has been developing the Sakhalynske oil and gas condensate field (Krasnokutsky district, Kharkiv region). It operates 25 gas condensate and oil and gas wells. Under agreements on joint activities, 10 gas condensate wells are additionally operated.