Ukraine May Become Europe's Energy Hub - EU Enlargement Commissioner

Jun 26, 2013, 07:53 ET from Worldwide News Ukraine

KYIV, June 26, 2013 /PRNewswire/ --

Ukraine remains a reliable partner of the European Union in the energy sector, particularly with respect to gas transportation and storage. This statement was released by the EU Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle during the press conference in Luxembourg. The eastern European country may also become the energy hub of Europe, he added, as reported by

According to the EU Commissioner, Ukraine is also an important partner of the European Union in terms of extraction of hydrocarbons and developing other non-conventional energy sources including shale gas. Notably, in an effort to develop domestic conventional and non-conventional energy resources, Ukraine started cooperating with global energy companies with an aim to develop gas deposits in western and eastern regions, as well as in the deep marine shelf of the Black Sea. Namely, Shell won the right to explore shale gas in Yuzivske gas field in Eastern Ukraine in May 2012. In August 2012, Shell, ExxonMobil, Romanian OMV Petrom, and Ukrainian state company Nadra received joint rights to develop underwater deposits at the Ukrainian deep marine shelf field under the Black Sea.

In February 2013, Poland, Hungary, Italy, Germany and other European states began to show their interest in Ukrainian gas transportation and storage system. Ukrainian gas transportation system (GTS) boasts the extensive underground storage facilities - 13 units with the total capacity of more than 31 billion cubic meters. Such capacity allows for stocking a sufficient volume of gas during the summer months, so that it can be utilized during peak situations in winter time in Europe.

Initially, the idea of Ukraine becoming an important energy hub of Eastern Europe has been expressed by the Special Envoy and Coordinator for International Energy Affairs of the U.S. Department of State, Carlos Pascual, during his February 2013 meeting with the Prime Minister of Ukraine, Mykola Azarov. He referred to earlier negotiations and agreements between Ukraine and the world's leading energy and petrochemicals companies Shell and Chevron. As a result of such cooperation in seven to eight years Ukraine could additionally obtain 25 billion cubic meters of shale gas annually, he said. Ukraine's actions were complementary to actions and priorities of Europe, noted then the U.S. State Department official.

SOURCE Worldwide News Ukraine