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Natural gas in the Ukrainian Energy Strategy 2035
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Natural gas in the Ukrainian Energy Strategy 2035
1.
© M.Gołębiewska Infographic is
based on Ukrainian Energy Strategy 2035 and other available sources Natural gas in the Ukrainian Energy Strategy 2035 ■ Achieving compliance with the EU law ■ Optimising natural gas balance The document calls for the limitation of natural gas consumption to the level of Central and Eastern European Countries, increasing gas extraction and decreasing diversified import. Gas export may start as well ■ Establishing the competitive gas market through e.g. introducing market prices for all customers and allowing supplier switching etc. ■ Finalising the process of Naftogaz unbundling and obtaining a foreign partner (investor) for the new TSO ■ Optimising natural gas transport network capabilities in line with the expected future demand for them ■ Integrating the natural gas network with networks in the EU ■ Giving European companies an opportinity to buy Russian natural gas on the Ukrainian-Russian border The document calls for trilateral talks with Russia and the EU about moving Russian gas delivery points from the Western to the Eastern border of Ukraine as well as providing technical conditions for this move ■ Taking up actions to reform gas distribution networks The document calls for regulating gas distribution network ownership and solving the problem of the lack of investments in network renovation Themainpostulatesupto2020 (atthefirststageoftheforecast) Energy Strategy 2035 was approved on 18th August 2017under the Cabinet of Ministers of Ukraine Resolution No 605-p. The Strategy was published on 7th September. According to the Resolution, the detailed Energy Strategy 2035 implementation plan is to be prepared within four months after the Strategy approval (by December 2017) 13/09/2017 Natural gas in the energy mix of Ukraine (primary energy) 2015 2020 e 2025 e 2030 e 2035 e Million tonnes oil equivalent 26,1 24,3 27,0 28,0 29,0 % 28,9 29,3 31,0 30,8 30,2 Energy Strategy 2035 expects the annual volume of Russian natural gas transit via Ukraine of 50-80 bcm by 2019. With European Commission efforts and Western sanctions on Russia the expected target gas transit volume will reach 15-40 bcm. Target foreign companies’ participation in the gas transit via Ukraine and gas storage in Ukraine will reach 50% and 20% respectively ► As there is no long-term forecast for economic and social development of Ukraine the revision of this prediction is expected ► In 2020 local gas extraction is to cover the whole demand ◄ Comment The possibility of buying Russian natural gas on the border between Russia and Ukraine has been discussed in Ukraine since 2014. Recently, it was evoked as an assignment and welcome disruptive change in the annual address of the President of Ukraine to the Verkhovna Rada. Naftogaz executives highlight that moving Russian natural gas delivery points is part of the reform that includes Naftogaz unbundling and finding a foreign investor (or investors) for the new TSO.
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