Caspian Report - Issue 06 - Winter 2014

changing the traditional markets of gas
and oil suppliers, transiting countries
and consumers. In this situation,
Ukraine is preparing for its new role -
being part of the energy belt between
the European Union, Russia and
Caspian region.
As mentioned above, the volume of
Russian natural gas used annually
by Ukraine was rapidly decreasing.
Until the end of 2013, the stated goal
of the government and the president
was to significantly reduce Russian
gas dependence by 2020. Ukraine
bought 41 bcm of Russian gas in 2010,
33 bcm in 2012 and 28 bcm in 2013.
To compensate for those reductions,
Ukraine increased gas imports from
the EU (Poland, Hungary and later
Slovakia and Romania), increased
its own gas production to 21 bcm in
2012 and up to 22 bcm in 2013, and
also started to substitute gas with
coal. As Europe’s the fourth largest
coal producer, Ukraine is seeking to
increase the use of coal in the country’s
energy mix. Ukraine’s coal reserves
UKRAINE IS PREPARING FOR ITS NEW ROLE - BEING PART
OF THE ENERGY BELT BETWEEN THE EUROPEAN UNION,
RUSSIA AND CASPIAN REGION.
account for around 117 billion tons
or 4% of the world’s total. According
to this, the Ukrainian and Chinese
governments and companies agreed
to build three plants, which produce
gas from the coal. This technology
was implemented in China with the
help of Shell Company. After that,
Chinese companies started to export
such technology to other countries,
including Ukraine.
At the same time Ukrainian authorities
are now making high stakes at shale
gas production in Ukraine (two
major shale gas fields in Eastern and
Western parts of the country operated
by Shell and Chevron) and deep sea
shelf production on the gas field close
to the Romanian border, operated by
ExxonMobil, as well as other shelf
fields operated by Eni and Total.
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CASPIAN REPORT, WINTER 2014