Ukraine’s OPZ looks for new gas tolling partner again

Source: ICIS News

2018/06/28

LONDON (ICIS)--Odessa Port Plant (OPP or OPZ) has announced a tender to conclude a new tolling contract on natural gas supply for ammonia and urea production, the Ukrainian state-run nitrogen fertilizer manufacturer said on Thursday.

Interested gas supply companies are to send their offers by 12 July. The award is due on 16 July.

The validity period of the contract is for six months, with an option of an extension.

The natural gas supplier should be able to supply up to 60m BTU (British Thermal Units) and not less than 48m BTU per month, beginning in August, according to one of the tender’s conditions.

The tender comes after the producer stopped urea and ammonia production in April due to issues over payment of gas to its then tolling partner All Ukrainian Energy Company.

The contract with All Ukrainian Energy Company lasted less than six months due to payment issues, according to sources.

The Odessa-based producer had shut down in November 2017, around the time a gas tolling deal with Energy Resources of Ukraine (ERU) ended.

It then restarted in end-January/early-February after securing a new gas supply deal with All Ukrainian Energy Company.

However, it then shut down again in April.

Meanwhile, the Ukrainian government in May approved a list of 26 large state owned companies for privatisation, including OPZ. Previous attempts to privatise the fertilizers producer have failed.