REUTERS
To confidently get off the import hook, Ukraine needs investment.
Ukraine is one of the few countries in Europe where natural gas production is growing, while in two years, Ukraine could become self-sufficient in terms of gas.
Gas production in Ukraine in the first four months of this year was 2.7% higher year-on-year, amounting to 5.14 billion cubic meters, said Naftogaz. In line with the government's strategy, by 2020 Ukraine is to extract 27 bcm annually, which meets the national demand, Rzeczpospolita reports.
In 2018, Ukrainian companies extracted 21.5 bcm of natural gas, 0.5 bcm more than two years ago. Therefore, the dynamics are not yet as high to ensure the implementation of strategic tasks.
That's why imports are growing. In January-April, purchases increased by 10%, to 2.4 bcm, mainly from Slovakia (1.2 bcm), from Hungary (0.7 bcm), and from Poland (0.4 bcm).
Read alsoUkrainian Deputy PM says what will help Ukraine strengthen position in gas talks with Russia
The publication recalls that from November 25, 2015, Kyiv has not been importing gas from Gazprom. And the country has been reducing imports each year. In 2018, the share of imports in the volume of gas consumed amounted to only 24.6% (3.46 bcm) compared with the figures of 2017 (10.59 bcm). For comparison, in 2007, Ukraine imported from Gazprom a record amount of 58.8 bcm. Back then, Ukraine was Russia's largest customer.
The result of such a major import was a huge waste of cheap raw material in the country, both by citizens and companies. In addition, the domestic extraction remained unprofitable, although Ukraine has large deposits of natural gas (1.1 trillion cubic meters, according to the BP energy report). And in terms of shale gas deposits, it tops the list of European countries.
According to U.S. assessments, the total shale gas resource of Ukraine stands at about 11 trillion cubic meters, which is twice as much as that of Poland. With a demand of 50-60 bcm per year, that would be enough to cover Ukraine's demand for 200 years.
Read alsoRussia plotting new gas crisis for Ukraine – Naftogaz CEO
At present, approximately 3 trillion cubic meters has been confirmed. The condition for success is an adequate investment because drilling a single well costs about US$6-8 million. If shale gas were actually extracted in Ukraine, the effect could be similar to the boom seen the U.S. with large production, low gas prices, and total independence from imports.
At the beginning of Russia-supported hostilities in Donetsk region, suggestions were voiced that this was in fact a war for a major shale gas deposit, which would threaten Russia's position in the European market.