DTEK Starts Importing Gas from Europe

DTEK is one of Ukraine’s largest energy traders. The company’s coal is used at power plants and industrial enterprises in Europe, Asia, North and South Americas, and Africa. Electricity is supplied to Hungary, Slovakia, Romania, Poland, Moldova and Belarus. DTEK is a full-fledged member of the European energy system and the European Federation of Energy Traders (EFET). The Company cooperates with the key players of the European energy market: Alpiq Energy SE (Czech Republic), Axpo Trading AG (Switzerland), E.ON Energy Trading (Germany), EDF Trading Limited (UK), Gazprom Marketing & Trading (UK). In order to ensure transparent sales to the end consumers in Europe, the company established DTEK Trading SA, a subsidiary in Switzerland.

DTEK entered the oil and gas business due to demand from its own generation facilities and SCM Group enterprises, amounting to about 6 billion cubic meters per year. In early 2013, the Company reached an agreement to purchase shares of Private JSC Naftohazvydobuvannya, the largest private gas production company in Ukraine, which can extract up to 1.5 billion cubic meters of natural gas. DTEK Trading obtained a five-year license for natural gas supply in July 2012, which secured its active position in internal and external gas markets.

DTEK’s Development Strategy to 2030 envisages the creation of a diversified energy company operating both domestically and abroad. This means the company will trade energy products, including gas, both on exchanges and under direct contracts, including those with foreign partners.

“Our goal is to improve business efficiency and the competitive strength of our products and services,” said Andrey Favorov, DTEK’s Commercial Director. “Having built up an efficient vertically integrated chain in coal, we are now turning to gas, as DTEK consumes over 3 billion cubic meters of natural gas per year. Currently, European gas prices are lower than those of Naftogaz of Ukraine, so we are planning to not only produce our own gas, but also to import it. We welcome an open and constructive dialogue.”

Reference

DTEK is the largest energy company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The shareholder of the group is Rinat Akhmetov. Maxim Timchenko is the Chief Executive Officer of DTEK. Currently, DTEK employs 140 thousand people.

Electricity is the core product of DTEK. The assets portfolio is represented by 10 thermal power plants and two combined heat and power plants with 18 GW of total installed capacity; one windfarm with the designed installed capacity of 200 MW; five electricity distribution and sales enterprises, which provide services to over 5.2 million customers – both individuals and legal entities; 31 mines and 13 coal-processing plants; oil and gas extraction assets.

In 2012, DTEK’s enterprises generated 51.4 TWh and purchased 53.9 TWh of electricity for further supply to consumers; coal output equaled 39.7 mln tonnes and coal processing amounted to 27.7 mln tonnes. DTEK exports electricity to six countries and coal to 36 countries worldwide.

DTEK’s consolidated revenues in 2012 amounted to UAH 82.5 billion; the Company’s net profit totalled UAH 5.9 billion.