UKRAINE: President Zelensky Invites Investors to Explore Opportunities in Ukraine’s Energy Industry

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President Volodymyr Zelensky said that Ukraine could become one of the energy security guarantors of the European continent and called for investment in the Ukrainian gas industry.

“Ukraine can become – I believe it will become – one of the guarantors of the energy security of the European continent. Together with Ukraine, you will be able to prevent such price crises ever again. We have a unique system of gas storage facilities near the border of the European Union, with a volume of more than 30 billion cubic meters. We are asked about help. That’s how practical it is – use our gas storages already this season,” Zelensky said in his speech at the Offshore Northern Seas Conference 2022.

According to him, the Europeans can store fuel in the Ukrainian gas storage facilities for the winter, and ” this will be your help both to us and to yourself.”

The President also emphasized that Ukraine had significant natural gas deposits, calling on investors to

participate in the development of fields and production.

“The leadership of Russia dreamed of stealing this part of our national wealth from us as well. But we will not allow it. We invite all investors, contractors and service companies to join gas production in Ukraine. If you want to help us pragmatically, please use this tool. Obtain licenses, enter into agreements on the distribution of products, carry out exploration and drilling. We would appreciate it. Our gas fields can play the same stabilizing role for Europe as the fields of Norway in particular,” the President of Ukraine underscored.

In addition, he said that Ukraine was preparing to increase the electricity export to the EU countries.

“We ensure this export during the war, and our electricity is much cheaper than what is currently available in the market,” the Head of State said.

Zelensky also invited entrepreneurs to invest in the production of green energy and green hydrogen in Ukraine. As noted, Ukraine is one of the best locations for providing all of Europe with green energy and green hydrogen as it has everything for that: “enough land, good wind, good sun, as well as ready-made energy logistics – powerful power transmission lines, gas pipelines that can be used for hydrogen – of course, after appropriate modernization.”

According to IEA report, Ukraine has a century-long history of oil and gas production and possesses substantial conventional and unconventional hydrocarbon reserves, estimated at 9 billion tonnes of oil equivalent (Btoe). Natural gas reserves are estimated at 5.4 trillion cubic metres (tcm), with proven reserves of 1.1 tcm of natural gas, more than 400 million tonnes (Mt) of gas condensate and 850 Mt of oil reserves. The loss of jurisdiction over Crimea, whose significant offshore gas resources are no longer accessible to Ukraine, means natural gas reserve estimates must be revised downwards.

Hydrocarbon resources in Ukraine are concentrated in three regions: the Carpathian region in the west; the Dnieper-Donetsk region in the east; and the Black Sea-Sea of Azov region in the south. The Dnieper-Donetsk region accounts for 80% of proven reserves and approximately 90% of gas production, and the Carpathian region has 13% of proven reserves and 6% of production. The remaining 6% of proven reserves are in the southern region, where production is conducted both onshore and offshore on the shallow shelves of the Black and Azov seas. The aggregate production in this region is 5% of Ukraine’s total oil and gas production.

Ukraine has considerable unconventional gas potential in the form of coalbed methane in the main coal mining areas of eastern Ukraine and in two shale gas basins: a portion of the Lublin Basin, which extends into Poland, and the Dnieper-Donetsk Basin in the east.