CEO of Ukrainian Energy Corporation wants to replace Russia in supplying gas to the EU
Ukrainian state energy giant Naftogaz plans to boost natural gas production and shift to domestic alternative energy sources, thereby storing enough fuel to supply the European Union during next year's hot season, CEO Yuriy Vitrenko told Reuters.
Ukraine can produce enough gas to replace supplies from Russia if it attracts investment and technology from Western partners, according to Yuriy Vitrenko.
"We are working on a number of new projects that will allow us to significantly expand production in Ukraine, by 10 to 30 percent," Vitrenko said, adding that the group would use shale and horizontal drilling technology to boost output.
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| Illustration: RT |
Meanwhile, according to Mr. Vitrenko, Naftogaz is also looking to convert its gas-fired power plants to run on biomass fuels. According to the CEO, Ukraine has the potential to produce “about 10 billion cubic meters of biomass energy,” equivalent to the amount of gas Ukraine imported before Russia launched its military operation in February.
However, some analysts point out that Mr Vitrenko’s plan is unlikely to succeed. Ukraine has not been able to increase domestic production in recent years and the situation is unlikely to change, especially since about 75% of Ukraine’s gas production facilities are believed to be located very close to the front line.
Ukraine’s gas reserves are also running low. Last year, Ukraine used about 19.4 billion cubic meters of gas during the hot season. Earlier this year, the government ordered Naftogaz to store at least 19 billion cubic meters of gas in storage facilities, but as of September 1, the company had only 13 billion cubic meters of gas in storage. Ukraine has not bought gas directly from Russia since 2015, instead importing Russian gas from Europe. With Russian gas flows to Europe slowing amid sanctions and technical problems with Moscow, analysts say Ukraine will not be able to store much more gas.
Moreover, analysts say that a large-scale conversion of Ukraine’s power plants to biomass is an unrealistic goal. According to former Naftogaz spokesman Maksim Beliavsky, it would take about $100 million in investments to produce just 1 million cubic meters of biomass energy per year.
Even with Western investment, replacing Russian gas to the EU, specifically about 155 billion cubic meters last year, still seems an impossible task for Ukraine./.
