Naftogaz for the fifth time fails to sell alternative fuel at auction

National JSC Naftogaz Ukrainy failed to sell 15,000 tonnes of alternative fuels at an auction on May 16 due to a lack of orders from buyers, according to the Web site of First Independent Exchange.

Naftogaz auctioned 6,000 tonnes of Innovative E-92 fuel at a price of UAH 12,175 per tonne (including VAT) and 9,000 tonnes of Innovative E-95 fuel at a price of UAH 12,300 per tonne (with VAT).

Prior to that, Naftogaz four times tried to sell alternative fuel, but the auctions failed due to a lack of interest from buyers.

The next auction will be held on May 22. Naftogaz will auction the same amount of fuel at the same starting price.

As reported, Naftogaz and Azov Oil Company (Mariupol, Donetsk region) in July 2012 signed a memorandum on cooperation in the sphere of alternative motor fuel production and sales.

It was assumed that Naftogaz will become the exclusive buyer of products of the Euro-4 and higher standards produced by Azov Oil Company. Azov Oil Company, in turn, will have access to Naftogaz's system of fuel storage and marketing.