Ukraine's Energy Sector Spikes Interest of Foreign Investors

Oct 31, 2013, 12:00 ET from Worldwide News Ukraine

KYIV, Ukraine, October 31, 2013 /PRNewswire/ --

European energy companies Eni (Italy) and Électricité de France (France) confirmed their readiness to invest in Ukraine during their meeting with the President of Ukraine Viktor Yanukovych. Moreover, Ukraine and Électricité de France signed a memorandum of understanding on cooperation in the areas of gas industry and electricity. Ukraine is aiming to achieve energy independence by increasing its own energy production, stated President Yanukovych during the meeting.

The Italian Eni is set to invest in Ukraine and help develop the extraction of hydrocarbons in the eastern European country, said the company Chief Executive Officer Paolo Scaroni. Henri Proglio, the Chairman of the Board and CEO of Electricité de France, informed that his company was ready to expand cooperation with Ukraine in the areas of nuclear energy, gas and electricity, as well as discussed the issue of electricity export, as reported by Interfax-Ukraine.

Triggered by ongoing gas price disputes with Russia, Ukraine began actively employing efforts to achieve energy independence in 2011. The country took steps to reduce domestic energy consumption, develop energy production, and diversify external suppliers of energy.

In 2012, Ukraine managed to reduce gas import by 26.5 percent - down to about 32 billion cubic meters, following the country's consistent strategy on increasing energy independence.

In an effort to develop domestic gas resources, Ukraine cooperates with global energy companies which will develop gas deposits in western and eastern regions of Ukraine, as well as in the deep marine shelf of the Black Sea. Namely, Shell won the right to explore 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 Ukrainian deep marine shelf field under the Black Sea.

Ukraine also aims to finish its LNG terminal project by 2018. The project cost is estimated to reach USD 1 billion. According to the official national projects website, LNG terminal will help decrease imported gas price by 15-20 percent.

Ukraine continues arranging for the reverse gas supplies from its Western neighbors - Hungary, Poland, Slovakia and Romania. The estimated annual volume of gas to be delivered through the reverse supplies may exceed 30 billion cubic meters.

SOURCE Worldwide News Ukraine