According to the results of 2024, the volume of natural gas production in Ukraine is estimated at 19.1 billion cubic meters, which is 400 million cubic meters more than in 2023 (18.7 billion cubic meters) and 600 million cubic meters more than in 2022 (18.5 billion cubic meters), said Artem Petrenko, Executive Director of the Association of Gas Producers of Ukraine (AGPU).
“According to preliminary estimates of our association, this year gas production in Ukraine will amount to about 19.1 billion cubic meters. Compared to 2023, we see an increase of more than 400 million cubic meters,” he said during an online meeting on the results of the year and prospects for the development of the energy sector of Ukraine at Energy Club on December 30.
According to the Executive Director, the positive trend of gas production growth in 2024 was ensured by both state-owned JSC Ukrgasvydobuvannya and PJSC Ukrnafta and private sector companies.
“Since August, the negative trend in private companies has been broken, and we have been recording an increase in gas production by private companies since August, and in five months they have managed to increase average daily gas production by more than 25%,” Petrenko said.
Also, according to preliminary data of the AGCU, more than 140 wells were drilled in Ukraine in 2024.
“This actually repeats the record-breaking year of 2023, when more than 150 wells were drilled. In total, over almost three years of full-scale invasion, gas producers have drilled more than 360 new wells,” the expert added.
According to him, since 2018, when the state provided incentives for drilling to Ukrainian gas producers, state and private companies have started drilling more than 720 wells in the country.
According to Petrenko, amid the ban on gas exports, Naftogaz of Ukraine continues to transparently buy gas on the Ukrainian Energy Exchange (UEEX) not only from producers but also from all market participants willing to sell gas on Naftogaz’s terms. According to the AGCU, since 2023, Naftogaz has purchased almost 2 billion cubic meters of gas at the UEEX.
“Under the conditions of closed exports, this is the only effective mechanism of cooperation between Naftogaz and participants, which is an incentive for private companies to increase gas production,” he emphasized.
At the same time, the Executive Director believes that in 2025, a negative factor for Ukrainian gas production will be the level of gas transmission tariffs, which the National Energy and Utilities Regulatory Commission (NEURC) increased for GTS Operator of Ukraine LLC by more than 4.5 times for internal entry points to the GTS starting January 1.
“This will affect not only state-owned companies but also private ones, as under the moratorium on gas price increases, it will reduce the investment opportunities of companies that they could direct to increase Ukrainian gas production,” Petrenko said.
As reported, gas transportation tariffs for internal entry points to the Ukrainian gas transmission system will increase 4.6 times from UAH 101.93 per 1 thousand cubic meters per day to UAH 464.37 per 1 thousand cubic meters per day starting January 1, 2025, and 4 times for external entry points, from UAH 124.16 per 1 thousand cubic meters per day to UAH 501.97 per 1 thousand cubic meters per day.
