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Ukraine takes step to energy independence
28.01.2013 14:49 "Agro Perspectiva" (Kyiv) —
The government of Ukraine and the power company of Royal Dutch Shell concluded the agreement on production of slate gas on the Yuzovsky field. The cooperation agreement worth $ 10 billion was signed for 50 years. This will allow the country to get rid of energy dependence, energy and coal industry minister of Ukraine Eduard Stavitsky said in interview, ForUm reports.
«In the first stage, the Shell company has undertaken investment commitments of $ 410 million to be spent on geological exploration. I hope that we will get free gas from at least one well by 2015,» he said.
This decision will allow Ukraine to shift from the consumption of natural Russian gas, which is now purchased at a price of $ 450 per thousand cubic meters, to its own slate gas. This technology was developed in America, which 10 years ago also bought gas from Russia. This gas is extracted from the fuel-rich layers at depths of several kilometers. In Ukraine, the gas will start to be produced in a few years — first the Shell company will drill several hundred wells to confirm the reserves. While foreign experts will prepare deposits, Ukraine will be engaged in training of staff — work on this project needs several thousand specialists in Donetsk and Kharkiv regions. Only one field — Yuzovsky — can give from 8 to 12 billion cubic meters a year, which is around one third of all the gas required for the country.
«I think that the price will range from 150 to 200 dollars per thousand cubic meters. For example, the average gas price was $ 300–400 per thousand cubic meters in the U.S. five years ago. Currently, given the development of shale gas, the cost is $ 80,» the minister said.
Now the U.S. is the leading gas producer in the world and by 2016, it is preparing to export to other countries. The total amount of shale gas in the world is about 200 trillion cubic meters, while its production harms neither people, nor environment.
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