(+9.0%)
For over a year, the gas production industry, like all of Ukraine, has been working under extremely difficult conditions amidst rocket attacks by Russian terrorists. During this time, more than 600 objects in the sector have been damaged, and the Ukrainian economy has suffered total losses of over $700 billion.
Despite all the difficulties, state and private companies continue to produce gas, drill new wells, invest in subsoil, pay taxes, help the army and displaced persons, thereby bringing us closer to victory.
"In the military year 2022, companies began drilling 74 new gas wells. This is a pretty good indicator, considering that work was being carried out under daily rocket attacks and direct ground invasion by Russian occupiers. Drilling new wells is the key to increasing gas production in the country, as well as the only effective mechanism for combating depletion of deposits and rapid annual natural decline. Over five years of incentive taxation in Ukraine, 432 new wells have been drilled. The share of private companies in new wells at depths of over 5 km is 50% of the total production volume," said Artem Petrenko, Executive Director of the Association, during his speech at the IX International Industry Forum.
Artem Petrenko also drew attention to the problems that require attention and prompt resolution:
1. Realization of produced private companies’ natural gas.
Due to the war, demand for gas from the industry, which was the main consumer of independent producers’ resource, has sharply decreased and is now over 50%. The inability to sell gas forces companies to inject it into underground storages, so resolving this issue will allow private producers to increase production, increase investment in the sector, and contribute to the budget.
2. Preparing for the next heating season.
Ukraine has set an ambitious goal of going through the 2023/2024 heating season without import, focusing primarily on its own production. This requires comprehensive measures to ensure the stable operation of gas production facilities, to increase energy efficiency, and to promote the use of alternative energy sources.
3. Optimization of Ukrainian GTS and risks of transit shutdown.
In case of a transit halt, the gas transportation system will operate in reverse mode, as has already happened when the Russians stopped gas supplies to the EU. Overall, carrying out optimization work will protect domestic consumers and positively impact on natural gas production in Ukraine.