.svg){kind=logo}
The Association, which was presented today, is ready to provide for Ukraine's needs in natural gas, and even export it. They are promising to increase natural gas production, and to attract millions of investments.
The Ukrainian gas producers – 6 private- and 1 state-owned – have decided to increase their combined natural gas production. To do so, they have united in the Association. The plans are ambitious – to increase subsoil development by a third of the current figures. They say, it will allow to minimize the needs for imports.
"Our industry can reach 27 bcm of natural gas annual production within 4-5 years. We have everything necessary to do so: stable production, developed infrastructure" – Daniel Maydanik, Chairman of the Board of the Association of Gas Producers of Ukraine, noted.
"In 10 years, if 500 drilling rigs would operate in Ukraine, and enough intensification operations are performed, Ukraine can provide for its own needs both for the population and for the industry. The excess may even be exported" – assured Oleksandr Romanyuk, executive director of Ukrgasvydobuvannya.
According to the experts estimates, resources in Ukraine's subsoil exceed 5 trillion cubic meters. Out of which only one fifth is proven. To increase natural gas production, we need approximately 80 billion hryvnia. The Association is certain that it is unlikely to find the necessary funds without changes to the tax legislation.
"Firstly, the Government should say: we are simplifying the access to those fields, we are simplifying the application process, we are giving a sufficiently discounted tax policy" – stated Ivan Plachkov, the President of the Association.
"We understood that at 50% royalty rate, it is uneconomical to invest. Actually, the fair royalty is around 10 percent. Definitely, it is the problem for the budget, which should be filled today" – added Volodymyr Demchyshyn, the Minister of Energy and Coal Industry of Ukraine.
Regardless of the problems, the Government and the business are ready to cooperate. And the Association of Gas Producers of Ukraine should be the connecting link between the two. It is only joint efforts which will provide for the energy independence of the country.