Prospects for Achieving Energy Independence in Terms of Gas Industry
Taras Tkachuk, analyst at DiXi Group, identified the prospects of Ukraine for achieving energy independence in terms of gas industry.
Nowadays energy security is one of the most important priorities of Ukraine, with natural gas market included. Current gas imports covered by the domestic gas production capacity will allow Ukraine to be independent from the export market conditions, significantly decrease the currency market pressure, and get rid of the Russian Federation’s black marketeering.
Understanding the urgent need in increase in gas volume produced by both state-owned and private companies, in December 2016 the Cabinet of Ministers of Ukraine by its Decree No. 1079-р approved the Concept for Development of Ukraine’s Gas Production Industry. This document is aimed at the determination of conditions and measures which will contribute to increasing in the domestic natural gas production volume. Implementation of the abovementioned measures will allow decreasing dependency from energy resources imports, bringing in investments to the energy industry, and ensuring Ukraine’s energy independence. At the same time, all these will promote sustainable use of energy resources and industry management based on the principles of the rule of law, non-discriminatory participation of all parties concerned, transparency, as well as ensuring of social standards, further improvement of the oil and gas industry policy. Implementation of the abovementioned concept provides that in 2020 state-owned and private companies shall increase the natural gas production volume up to 27.6 bcm.