Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Ukraine may stop importing gas, start exporting electricity - minister

Published 25/01/2024, 10:51
© Reuters. FILE PHOTO: Sergij Buganov, a worker of electricity company Khersonoblenergo, repairs the power cord of a pylon amid Russia's invasion of Ukraine, in Pravdyne, Kherson region, Ukraine, February 23, 2023. REUTERS/Lisi Niesner/File Photo
NG
-

By Pavel Polityuk

KYIV (Reuters) - Ukraine is close to being self sufficient in gas for 2024 and may resume electricity exports in the spring, the energy minister said on Thursday.

Ukraine has not bought gas from Russia since 2015, importing from European countries instead and increasing its own production.

"We are close to it (not needing to import gas). It is realistic to reach the zero gas balance this year," German Galushchenko told Reuters in an interview.

"But it's important to realise that our consumption has dropped sharply. A lot will depend on how the industry and the economy will develop. Today there is growth in production and the potential for increase is there and it is real potential."

Ukraine consumed about 27 billion cubic meters of gas in 2021, making it one of Europe's biggest users of the fuel before the full-scale war with Russia.

But its economy shrank by about a third in 2022 as industries reduced or halted production due to security risks, disrupted exports and broken supply chains.

Galushchenko said consumption fell to around 19 bcm in 2023.

Ukraine's state-owned Naftogaz last month said it expected the country's natural gas production to increase by 7% in 2023, with the same forecast for this year.

Ukraine has not yet reported how much gas it produced in 2023, but it had forecast output of around 19.1 bcm compared with 18.5 bcm in 2022.

Galushchenko also said that Ukraine could resume substantial energy exports as early as this spring due to lower consumption.

© Reuters. FILE PHOTO: Sergij Buganov, a worker of electricity company Khersonoblenergo, repairs the power cord of a pylon amid Russia's invasion of Ukraine, in Pravdyne, Kherson region, Ukraine, February 23, 2023. REUTERS/Lisi Niesner/File Photo

Ukraine banned exports during the last heating season amid Russian attacks on Ukraine's energy system and large-scale shutdowns.

Ukraine began substantial energy exports before the war, but stopped them after Russia seized Ukraine's largest nuclear powerplant at Zaporizhzhia.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.