In January-September 2024, the companies of the Naftogaz Group – JSC Ukrgasvydobuvannya and PJSC Ukrnafta – produced more than 11 billion cubic meters of commercial gas, which is 0.7 billion cubic meters more (about 7%) than in the same period in 2023, the group reported on its website.
“We continue to increase Ukrainian gas production. We are 2% higher than the planned production volumes. I am grateful to the teams for managing to achieve their goals even in the face of war. We will continue to support the trend of developing Ukraine’s energy independence,” said Oleksiy Chernyshov, Chairman of Naftogaz Group.
He noted that this heating season, as in the past, Naftogaz plans to provide the population of Ukraine and other categories of public service obligations exclusively with its own resources.
As reported with reference to Chernyshov, Naftogaz Group produces 43-44 million cubic meters of gas daily, with total daily production in Ukraine amounting to 53 million cubic meters (which is approximately 83% of the total).
Naftogaz’s consolidated quarterly report says that the group’s forecasted commercial gas production for 2024 is expected to reach 14.6 billion cubic meters. In February, Chernyshev said that the group’s goal for this year is to get closer to 15 bcm of production.
In January-August 2024, JSC Ukrgasvydobuvannya and PJSC Ukrnafta increased commercial gas production by 7.7% (by 0.7 bcm) compared to the same period last year – up to 9.8 bcm.
These data were made public by Oleksiy Chernyshov, CEO of Naftogaz Group, at the European Business Association’s event Global Forecast. Strengthening Unity”.
Chernyshov also clarified that the group’s oil and condensate production during this period amounted to 1.3 million tons, compared to 1.2 million tons in January-August 2023. The plan for the year is 2 million tons, with 1.8 million tons in 2023.
According to him, Naftogaz is one of the largest investors in the country’s economy with an annual volume of investments and capital expenditures of about $2 billion.
Earlier, UGV reported an increase in commercial gas production by 7.2% to 9.26 billion cubic meters over 8 months of 2024.
As reported, Naftogaz’s consolidated quarterly report says that the group’s forecasted commercial gas production for 2024 is expected to reach 14.6 bcm. In February, Chernyshov said that the group’s goal for this year was to get closer to 15 billion cubic meters.
European Commissioner for Energy Kadri Simson says the European Union is ready to completely stop the transit of Russian gas through the Ukrainian gas transportation system after the expiration of the current contract in December this year.
“When I spoke with my colleagues in Ukraine, I made it clear that we are preparing for a situation where the transit agreement between Ukraine and Russia will expire by the end of this December. We have found alternative supply routes, and the Member States or their companies that are still receiving gas from Russia have in fact been granted two additional years compared to other companies that Russia has decided to stop supplying to in 2022,” the European Commissioner said at a press conference in Brussels on Wednesday.
At the same time, Simson stated that Ukraine’s gas transportation infrastructure is also part of the EU’s infrastructure, as part of the European gas is stored in Ukraine’s storage facilities, “which provide us with additional capacity.”
“Ukraine is also a gas producer, so we have to make sure that their infrastructure still has value. But my message is very clear: there is no need to look for any new ways to continue trading with Gazprom. Alternative supplies are available, and we are engaging with affected member states to show them that alternative routes will deliver the volumes they need,” she elaborated.
Simson also referred to the words of Ukrainian President Volodymyr Zelenskyy, who said in late August that “Ukraine is not interested in extending the transit contract with Russia, and that European companies have the right to use Ukrainian infrastructure.”
According to the European Commissioner, her “main mission is to encourage companies that are still receiving Russian pipeline gas because they had contracts signed before the war to choose more predictable alternatives.”
Simson also cited figures showing that the share of Russian gas in EU imports fell from 45% in 2021 to 18% by June 2024, while imports from reliable partners such as Norway and the United States increased. In addition, the EU reduced gas demand by 138 billion cubic meters between August 2022 and May 2024.
“The EU reached its 90% winter gas storage target on August 19, 2024, well ahead of the November 1 deadline, and energy prices are more stable and remain well below the peak levels of the 2022 energy crisis,” she elaborated.
In January-August 2024, Ukrgasvydobuvannya JSC (UGV) increased commercial gas production by 7.2% compared to the same period last year – up to 9.26 billion cubic meters, the company reported on its Facebook page.
During this period, UGV completed drilling 62 wells, of which 52 were put into operation. Of these, 23 have an initial daily flow rate of more than 100 thousand cubic meters.
“We continue to actively drill wells, introduce new technologies, explore new fields – we do everything to increase gas production every day. The cubic meters of gas and oil produced make Ukraine more stable and provide a reliable rear for our soldiers,” said Serhiy Lahno, Chairman of Ukrgasvydobuvannya.
As reported, in 2023, the company produced 13.224 bcm of commercial gas, which is 0.679 bcm more than in 2022.
“In 2023, Ukrgasvydobuvannya launched 86 new wells, 24 of which had an initial flow rate of more than 100 thousand cubic meters.
NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.
Ukrgasvydobuvannya JSC has commissioned a new well with a flow rate of 107 thousand cubic meters of gas per day, the company reported on Facebook.
The appraisal and production well with a depth of 3715 meters was drilled by the Shebelynka drilling department at the old gas condensate field, which has been developed since 1978. Despite this, the field has significant residual reserves of more than 0.9 billion cubic meters of gas.
“This well has achieved a high flow rate due to the stimulation measures taken, including three stages of hydraulic fracturing. The well was completed using a coiled tubing unit,” said Serhiy Lagno, Head of UGV.
As reported, in 2023, Ukrgasvydobuvannya launched 86 new wells, 24 of which had an initial flow rate of more than 100 thousand cubic meters, and in January-May 2024, 36 new gas wells, 11 of which are highly productive.
In 2022, UGV produced 12.5 billion cubic meters of natural gas (commercial), which is 3% less than in 2021. In 2023, the company produced 13.224 bcm of commercial gas, which is 0.679 bcm more than in 2022.
“In January-June 2024, Ukrgasvydobuvannya increased natural gas (commercial) production by 8.8% compared to the same period in 2023 – up to 6.913 bcm.
NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.
“In January-July 2024, the Ukrainian Gas TSO purchased 128.1 million cubic meters at the Ukrainian Energy Exchange (UEEX), the company’s press service reports.
According to it, the operator concluded 82 agreements with 18 sellers, in particular, in July, GTSOU bought 29.9 million cubic meters at the UEEX, concluding 18 contracts with 10 sellers.
“The operator is interested in expanding the range of counterparties and building long-term mutually beneficial relations with the market. The company plans to actively offer participants a full list of procurement products, in particular to non-resident participants with the delivery of “border of Ukraine” and with the delivery of UGS “customs warehouse”,” the statement said.
GTSOU provides natural gas transportation to consumers in Ukraine and the European Union.
