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Supply Agreement

The supply of natural gas is carried out in accordance with an agreement under which the supplier undertakes to deliver natural gas of appropriate quality and quantity as specified in the agreement, and the consumer undertakes to pay for the gas in the amount, terms, and manner stipulated by the agreement.

The quality and other physicochemical characteristics of natural gas are determined in accordance with established standards and regulatory legal acts.

The supply agreement must contain a number of essential and mandatory terms, including:

  • The EIC codes of the supplier and consumer, and the EIC code(s) of the consumer’s commercial metering point(s) through which the natural gas supply will be carried out;
  • The name of the Distribution System Operator (DSO) / Transmission System Operator (TSO) with whom the consumer has a distribution/transportation agreement;
  • Annual, monthly, and/or daily volumes of natural gas and permissible deviations thereof;
  • Procedures for reviewing and adjusting confirmed natural gas volumes, including during the billing period;
  • Modes of natural gas supply and consumption during the billing period;
  • The price of natural gas supply under the agreement;
  • Procedures and deadlines for payment settlements for the supplied natural gas;
  • Procedures for reconciling the actual volume of consumed natural gas on a specific date or over the relevant period;
  • A list of cases when natural gas supply to the consumer may be restricted or terminated, and the procedure for such restriction/termination; for consumers not classified as protected according to the Rules on Natural Gas Supply Security approved by the central executive authority responsible for the formation and implementation of state policy in the oil and gas sector, additional requirements specified in these Rules apply;
  • Procedures for changing the supplier;
  • The term of the agreement and the conditions and procedures for its extension, termination, or cancellation, including information regarding the possibility of unilateral termination.

The full list of mandatory terms of the supply agreement is specified in Article 12 of the Law of Ukraine “On the Natural Gas Market.”