At first glance, Ukraine’s gas sector does not seem like the best short-term investment prospect in the former Soviet Union. Exploration and development plans have been stymied over the last nine months by diplomatic clashes between Kyiv and Moscow and by armed conflict with separatists in the east. Normal price £385. Special 10% launch discount during August.
In the long term, though, Ukraine holds strong interest for investors. The country is believed to possess sizeable unconventional gas reserves and has shown interest in privatising its extensive gas pipeline system.
The NewsBase Ukraine Gas Sector 2014-2020 Special Report examines some of the key factors affecting the gas sector, including the political climate, unconventional resources and pipelines. The report aims to answer a number of critical questions, including:
* What is the new Ukrainian government’s stance on foreign investment?
* What political and economic risks do investors face?
* How large are Ukraine’s gas reserves?
* Where are the most attractive unconventional gas prospects located?
* What are the obstacles to unconventional gas development?
* How committed is Ukraine to privatising its gas pipeline network?
Table of contents
- Time for a closer look
Though diplomatic tensions and armed conflict have dominated headlines lately, the country’s gas sector is worth a closer look
- The basis for development
The former Soviet republic has sizeable assets – but there are significant obstacles to development
- Kyiv maintains a steady course
The country’s interim government and new president have followed much the same path as Yanukovych in their efforts to cut dependence on imported Russian fuel
- Risks remain significant
Ukraine remains committed to promoting the development of domestic gas reserves, but its new government will be working under different circumstances and will face a different set of obstacles
- Shale gas and tight gas potential
Although the unrest in the east has delayed some tight gas projects, Kyryl Tomlyak of KT-Energy says the country is poised to move forward with shale gas exploration in the west
- The challenges to development
Although Kyiv has expressed high hopes for the region’s shale deposits, which may hold as much as 3-5 tcm of gas, unrest in the Donetsk and Luhansk regions has put development plans on hold
- New course for pipelines
The failure of Ukraine’s latest efforts to attract investment in its natural gas transportation system may be a blessing in disguise