Ukraine’s natural gas

Ukraine was estimated to possess natural gas reserves of 1.1 trillion cubic meters in 2004 and was ranked 26th among countries with proved reserves of natural gas before Crimea was annexed by the Russian Federation. Its total gas reserves have been estimated at 5.4 trillion cubic meters.

Domestic production peaked in 1975 at 68.1 billion cubic meters (bcm). Since then production gradually declined and has stabilised in recent years at around 20 bcm.

Since 2011 Ukraine has been trying to raise its natural gas production levels in the Black Sea from 1 bcm in 2011 to 3 bcm in 2015. In 2012 Black Sea production reached 1.2 bcm and it is predicted to rise to 1.65 bcm in 2013.

By 2030 about half of Ukraine’s production will come from non-traditional gas deposits (including 6-11 bcm of shale gas a year); according to the Ukrainian Government's plans.

Since 2012 Ukraine has gradually been switching from natural gas-based to coal gasification technologies developed by China.

The oil and gas industry has activities in six regions of Ukraine:

Ukraine remains a major gas consumer, ranked thirteenth in the world and fifth in Europe. Heavy industry is the largest consumer of natural gas in Ukraine (accounting for 40% of domestic consumption) followed by households (over 30%) followed by communal heating systems supplying both government buildings and residential properties (20%). It is estimated that 9% of gas is wasted.

Consumption levels have fallen from 118 bcm in 1991 to less than 55 bcm in 2012.

Naftogaz stated that on 17 December 2013 that only four Ukrainian Oblasts (provinces) made regularly payments for natural gas.

Ukraine announced on 26 March 2014 that household natural gas prices would rise by 50% from 1 May 2014 in order to receive an IMF $14bn-$18bn rescue package.

In the first seven months of 2014 gas consumption in Ukraine fell by 15%; this was amidst the 2014 Crimean invasion and the 2014 Russian aggression in Ukraine.

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Wikipedia