The leaders in deposits. In Ukraine grows gas production

В лидерах по залежам. В Украине растет добыча газа

Ukrainian authorities had planned in 2020 to refuse from gas imports. But so far it is hampered by several factors.

Ukraine was among the leaders in Europe in terms of deposits of gas and 1.1 trillion cubic meters. More only in Russia, which ranks first in the world, and also from Norway.

In January, Prime Minister Vladimir Groisman told that Ukraine could reach energy independence. In the first months of 2019, the Ukrainian gas production increased by 2.8 percent. But the cost for naseleniya is more expensive. Корреспондент.net tells details.

How much gas Ukraine

On 13 March a report was published by BP Statistical Review of World Energy, which says that the largest gas reserves in the world are Russia (35 trillion cubic meters), Iran (33.2 per trillion cubic meters), Qatar (24,9 trillion cubic meters) and Turkmenistan (19,5 trillion cubic meters).

Among European countries, except Russia, leader of Norway (1.7 trillion cubic meters), Ukraine (1.1 trillion cubic meters) and Netherlands (0,7 trillion cubic meters).

The Ukrainian government estimated reserves of 0.6 trillion cubic meters. The difference in the estimates due to improved methodology and the growth of exploration drilling.

In 2018, the Ukraine consumed 32.3 billion cubic meters of gas. Got 20,89 billion cubic meters of gas (including private companies), and imported to 10.59 billion. As of March, gas storage is 9.4 billion cubic meters.

Russian gas from Ukraine declined in 2015 and pokupaet natural gas from the European Union. But the European countries are gas importers. It turns out that Ukraine buys the same Russian gas that passes through Ukrainian GTS, but three times more expensive.

In January Groysman called the Russian gas “weapon hybrid war” and listed the steps that may lead Ukraine to a gas independence:

  • The increase in Ukrainian gas extraction.
  • Energy efficiency: consume less gas thanks to the latest technology and reasonable power consumption.
  • The integration of the Ukrainian gas transportation system in the European market.
  • Protection of Ukrainians who are not able to pay for utilities, through a system of subsidies: mechanisms for the monetization of subsidies.

Earlier, the Prime Minister urged Ukrainians to reduce gas consumption to an extent which Ukraine itself produces.

Groisman also accused the Company, which belongs to Naftogaz, the failure of the plan to increase production natural gas to 20 billion cubic meters.

He also noted that Ukraine has enough reserves to fully provide itself with gas. In 2016 it is planned that by 2020 Ukraine 100 percent supply natural gas to its own production.

 

Why Ukraine produces little gas

Ukraine for many years focused on the purchase of gas in Russia, so a private gas power is not developed, and those that were already obsolete.

Billions of dollars have gone to Gazprom, and geological prospecting industry in Ukraine almost fell into disrepair, complain to the gas company.

According to the Chairman Gosgeonedr Oleg Kyrylyuk, the government invests 100 million per year from the required 1.5 billion hryvnia for the development of the sector.

The development of gas production in Ukraine is also hampered by a lack of investment in exploration, refining and energy efficiency, as well as complex bureaucratic procedures.

The company, which accounts for a large part of the state in production, over the last few years upgraded 744 wells and launched 69 new wells, with the result that in 2018 it produced 15.5 billion cubic meters of gas.

However, the company management complains that local authorities block production. So in the Poltava region, where the largest of the studied gas fields in Ukraine, the authorities over 60 times refused to drill new wells.

Ariel Cohen, a senior fellow at the Atlantic Council and founder of the company International Market Analysis, in late February, wrote in Forbes that the major international energy conglomerates to notice the energy potential of Ukraine.

The Minister of energy of the USA Rick Perry during his visit to Ukraine, called the country the “Texas of Europe”. Giants such as Shell, Chevron, Eni and ExxonMobil promised to invest in Ukraine millions of dollars, but these transactions failed.

Cohen also writes that the problem of gas production of Ukraine is corruption, excessive internal settlement and the monopoly of the state. Thus, the company controls 75 percent of all domestic natural gas production.

This led to the fact, govoorit expert that profitable private lease contracts repeatedly got close to the authorities biznesmenom.

Oil and gas resources in the Black sea that Ukraine has lost Crimea also negatively affect the development of the national energy sector.

“The war-ravaged country, which is dominated by corrupt state monopoly, could not become an attractive place for private investments”, – the expert concludes.

 

 

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