On November 18, 2021, Mr. Viktor Karvatskyy, Director of the ADASTRA Research Center, Ukraine held an online seminar titled “Development Prospects of Ukrainian Gas Sector”.

Mr. Viktor Karvatskyy introduced the development of the energy and gas industry in Ukraine, which is one of the most discussed and politicized issues in the country. Ukraine plays one of the key roles in the transportation and distribution of natural gas due to its geographical location and availability of mineral resources. Significant share of Russia’s gas transit to Europe passes through the Ukrainian gas transport system, while Ukraine itself consumes a substantial amount of transported gas. In fact, Ukraine consumes about 30 billion cubic meters of gas per year, in comparison to its own production of about 20 billion cubic meters.

Mr. Karvatskyy emphasized that Ukraine has very large gas reserves, estimated at 1.1 trillion cubic meters thanks to which Ukraine has a chance to become a leading gas hub in Europe. However, in order to realize this potential, Ukraine must overcome a number of obstacles and initiate important transformations. One of the immediate obstacles is Russia’s categorical reluctance to export gas to Europe via Ukraine. Russia is more interested in developing its Nord Stream project, neglecting the existence of the Ukrainian route. On the other hand, Ukraine needs to modernize its gas transmission system and advance its energy security mechanisms. Other socio-economic impediments related to development of Ukrainian gas were also mentioned by the presenter. 

Mr. Karvatskyy believes that Ukraine has a very large storage capacity of about 50 billion cubic meters, which could be implemented if Ukraine joins the South Pototka project. 

At the end of the seminar, participants shared their visions on the issue and provided a local perspective on Ukraine’s gas sector development.