Ukrnafta developing over 400 MW of generation projects, raises EUR 400 mln in external financing – executive
PJSC Ukrnafta has more than 400 MW of new generation projects in the pipeline, mostly gas-fired, for which it has already secured EUR 150 million in grants and a EUR 250 million loan from the European Bank for Reconstruction and Development (EBRD), according to Oleksandr Hryban, the company's Director of Sustainable Development and Non-Financial Reporting.
"In order for the company's gas to become more than just a commodity and create added value, we made a strategic decision to develop a generation portfolio, which today already totals more than 400 MW in the pipeline," Hryban said at the 10th Business & Legal Energy Forum in Kyiv.
He explained that most of the projects involve gas-fired generation, as the company seeks to capitalize on its gas reserves and sees the need to develop balancing capacity to replace losses caused by Russian aggression. The loss of several gigawatts of balancing capacity, he noted, is restraining renewable energy development.
"Since the company's main funds are directed toward its core business, we set the task of attracting international financing. We've had notable success: EUR 150 million in grants and EUR 240 million in loans from the EBRD, specifically for developing gas generation," Hryban said.
He clarified that the projects include gas-piston installations – so-called distributed generation, which supports regional grids, including in frontline areas – as well as a "flagship, large-scale project: Ukraine's first-ever combined-cycle gas and steam turbine power plant."
Hryban emphasized that attracting international financing also served as a driver for Ukrnafta's transformation in line with ESG (Environmental, Social, and Governance) standards.
As reported, in July 2025 Ukrnafta signed a EUR 160 million loan agreement with the EBRD on the sidelines of the Ukraine Recovery Conference (URC-2025) to implement energy projects. In May 2025, the EBRD announced a project to provide Ukrnafta with a state-guaranteed loan to finance construction of a combined-cycle thermal power plant with an estimated capacity of up to 250 MW in Dnipropetrovsk region.
The plant will be capable of supplying electricity and heat to households, as well as generating steam for industrial processes. At one of the panel sessions ahead of URC-2025, acting CEO Yuriy Tkachuk said Ukrnafta is developing six gas-piston and gas-turbine projects totaling 420 MW and plans to build a 250 MW combined cooling, heating, and power (CCHP) system.
Earlier, in January 2025, Ukrnafta Supervisory Board Chairman Duncan Nightingale told Interfax-Ukraine the company was working on gas-based generation projects with total capacity of up to 370 MW.
In December 2024, Ukrnafta and the EBRD signed their first loan agreement for EUR 80 million, guaranteed by the state, to finance the supply and installation of distributed gas power plants and cogeneration facilities across Ukraine.
Ukrnafta is Ukraine's largest oil extraction company and operates the larggest national network of filling stations Ukrnafta. In 2024, the company assumed management of Glusco's assets. In 2025, it completed a deal with Shell Overseas Investments BV to acquire the Shell network in Ukraine. It operates a total of 662 filling stations. The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, it has issued its own fuel coupons and cards, NAFTA Cards, sold to legal entities and individuals through Ukrnafta-Postach LLC.
The largest shareholder in Ukrnafta is Naftogaz Ukrainy, which holds a 50% plus one share. In November 2022, the General Staff of the Armed Forces of Ukraine decided to transfer the corporate rights of the company, previously owned by private shareholders, to the state. The Ministry of Defense now oversees these shares.