Ukraine’s natural gas reserves constitute 1.1 trillion cubic meters, 71% of which is licensed to PJSC Ukrgasvydobuvannya. Other state-owned companies are licensed with 17% of the country’s proven gas reserves. The remaining 12% is shared among the private corporations and other JAs between private and State companies.
In 2016 Ukraine’s natural gas consumption made up 33.2 billion cubic meters (“bcm”), which represents a 1.8% decrease compared to the previous year.
The decrease in natural gas consumption is mainly caused by reduced consumption by industrial consumers, which dropped by 11.6% from 11.2 bcm to 9.9 bcm due to implementation of energy efficiency programs. Heating utilities and population increased consumption from 7.1 bcm to 7.3 bcm and 11.3 bcm to 11.9 bcm respectively.
Production and imports
Ukraine’s domestic natural gas production in 2016 made up 20.1 bcm, which is 1.0% higher compared to 2015. PJSC Ukrgasvydobuvannya produced 14.6 bcm (73% market share), from which 1.0 bcm were produced by enterprises established under joint activities agreements. The total gas production by private producers (excluding JAAs) in 2016 amounted to 4.2 bcm, which is 7.7% higher compared to 2015. In 2016 the Misen Group led JA remained one of the leading market players by producing 596.6 million cubic meters (“mmcm”).
Due to decreased consumption in 2016 Ukraine imported 32.3% less natural gas (by 5.3 bcm) compared to the previous year. From these volumes around 9.1 bcm were imported from Slovakia, 1.0 bcm from Hungary and 1.0 bcm from Poland. There were no purchases from the Russian Federation in 2016. Ukraine once again proved its commitment to strategic initiatives to diversify its imports of natural gas on a major scale and strengthen energy independence.