Shale Gas Would Meet Ukraine's Future Demand

Ukraine may pump about 35 billion cubic meters of unconventional gas in 2023.

Didier Casimiro, head of TNK-BP's Ukraine operations, said that the company plans to bid for Ukrainian shale gas licenses and will use BP Plc’s technology to tap deposits, reported Bloomberg.

Casimiro said that “there is a lot of interest” in Ukrainian shale gas resources and that TNK-BP was interested in exploring for unconventional gas in the Luhansk and Donetsk regions.

Ukraine may pump about 35 billion cubic meters of unconventional gas in 2023 on top of conventional output, Casimiro estimated. The nation is expected to produce about 20 billion cubic meters of natural gas this year, short of demand of 60 billion cubic meters. The gap will be met by Russian imports.

However, Casimiro said that  “there is a lot to be done in the country” to make investment attractive.

Further shale gas news from Ukraine saw Royal Dutch Shell's interest in the exploration of shale gas in that country confirmed.

Ukrinform reports that Shell is interested in conducting exploration work on the production of shale gas in Kharkiv and Donetsk regions (eastern Ukraine).

Vasyl Bezyazychny, the chief of the main department for the fuel and energy complex at Kharkiv Regional State Administration, said that "Shell has requested documents in order to study and explore an area of about 84 square kilometers in Izium district in Kharkiv region and in a part of Donetsk region."

Bezyazychny noted that according to preliminary studies, shale gas reserves in this area were estimated at 1.5-2 trillion cubic meters.

In January 2011, Shell announced plans on shale gas production in the Yuzivska gas area (Donetsk and Kharkiv regions).

ExxonMobil Corp., Chevron Corp., and Eni SpA have also indicated their interest in exploring for shale gas in Ukraine.