The Kyiv City State Administration is considering investment in the production of Ukrainian natural gas, which municipal enterprise Kyivteploenergo will use to produce heat for the city's consumers, the Kyiv City State Administration said on Tuesday.
"It is the use of domestically produced gas, the cost of which is significantly lower in comparison with the cost of imported gas, that will reduce the costs of the enterprise, which directly affect the tariff," the city administration said.
To this end, the city authorities have addressed a letter to NJSC Naftogaz Ukrainy with a view to establishing possible cooperation in the field of gas production.
In particular, the city proposes to create, together with Naftogaz, a working group to consider the proposed initiative and prepare a corresponding project.
The administration argues its intention to invest in the gas production sector with the need to overcome the crisis in the field of heat supply, as well as the need to provide "reliable and high-quality services at prices that would take into account the population's ability to pay."
"The cost forecast shows that the country's heating companies will have to buy natural gas to produce heat for certain categories of consumers at prices that are 3-4 times higher than those included in the tariff," the city administration said.
Kyivteploenergo is one of the largest consumers of natural gas in Ukraine, annually using about 2.3 billion cubic meters of gas to provide district heating and electricity production. The share of gas in the Kyivteploenergo heat tariff structure reaches 80%.