12:57 15.04.2013

Ukraine could become net gas exporter by 2025 - minister

2 min read
Ukraine could become net gas exporter by 2025 - minister

Ukraine could bring in more international majors to explore its hydrocarbon fields on production-sharing terms and become a net gas exporter by 2025, Energy and Coal Minister Eduard Stavytsky said.

"We plan by the end of this year to sign at least four more PSA's (production-sharing agreements] on top of the existing two. As a result, investors will be able to start exporting gas to Europe in four or five years and Ukraine could become a net gas exporter by the middle of the next decade," Stavytsky said at the annual energy forum in Lech, Austria, on April 12.

Stavytsky said Ukraine would grant investors free access to pipelines and gas storage facilities, as per its national legislation and status as a member of the Energy Community.

"We also expect our EU neighbors to honor their commitments. Above all this concerns unimpeded reverse gas supplies to Ukraine via the territory of EU states," the minister said.

He also said Ukraine was interested in the gradual formation of a gas hub in the country, which would be an integral part of an East European gas hub. Ukraine's advantage is its system of gas storage facilities, which can store over 30 billion cubic meters of gas at any one time but could have their capacity increased to 50 billion-55 billion cubic meters.

"We expect that the successful gas hub models in Britain and the Netherlands will be implemented gradually in other EU countries. We are interested in such a European gas market in order to diversify gas supplies to Ukraine as a source of revenue for gas transit services to Europe, and for gas storage under both long-term contracts and in spot trading; and as a stable and sizeable market for future exports of our own gas," Stavytsky said.

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