Caspian Report - Issue 06 - Winter 2014

the gas reverse with Europe, which
was completely halted in the first
days of 2014. Hopefully, the Ukrainian
government understands the
importance of saving some volumes
of gas reverse and open reverse
routed for Ukraine, as Russia gives
no guarantee against the possible
increase of gas prices to the level of
400-450 USD per thousand cubic
meters.
The Ukrainian market remains important
for Caspian gas. By the time
of TAP-TANAP launch, Ukraine will
have the gas agreement with Russian
Federation ended in 2019, so
Caspian gas in Ukraine could meet a
market niche at the level of 5 bcm annual
or even more.
The new energy policy of the Ukrainian
government could lead to a
serious reduction of Russian gas dependency
and could make Ukraine a
gas producer in the East European
region. This plan was connected to
the idea of making the country a gas
energy hub. Among the promoters of
the gas hub project are the American
energy companies, which have plans
to sell Ukrainian shale gas and deep
sea shelf gas. But now this plan is under
question.
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CASPIAN REPORT, WINTER 2014
Shale gas is the sphere where
Ukraine could become a leader
among European states. So far, the
shale gas projects are successfully
developing in Ukraine and there are
good chances for their successful realization
within 3-5 years. This will
have an important impact on the energy
security of Eastern Europe.