Last updated on April 21, 2014 at 1:20 EDT

IEA Speaks of Ukraine’s Potential for Energy Revolution

October 23, 2012

KYIV, Ukraine, October 23, 2012 /PRNewswire/ –

The International Energy Agency presented an in-depth review of Ukrainian energy
policies Ukraine 2012 Energy Policy Review. IEA Executive Director Maria van der Hoeven
emphasized that the IEA experts considered Ukraine a huge energy market as well as a large
producer of coal, oil, gas, and nuclear power. Moreover, the experts reckoned the
geographical position of Ukraine to be strategic for gas transit, reports BBC Ukraine.

Ukraine needs to increase its energy efficiency in the building and industry sectors,
as well as modernize centralized heating systems of the housing and utilities sector, said
Maria van der Hoeven. Luckily, the country has “the scope to reduce gas consumption in the
residential sector”, states iea.org. The much needed reforms would provide for domestic
energy market liberalization, attracting investment and fostering competition.

Apart from improving energy efficiency, Ukraine can “further expand conventional and
unconventional gas extraction to achieve import independence on the longer term”.
Moreover, the Eastern European country has “untapped biomass and waste-to-energy
opportunities”, which will contribute to the increase of domestic resource production.

Ukraine recently opened its shale gas market for major global players – ExxonMobil,
Royal Dutch Shell, and Chevron. The companies won respective bids for the development of
shale gas fields and a deep marine shelf field in Ukraine. Reportedly, they plan to invest
hundreds of millions of dollars in their businesses in the Eastern European country.
Ukraine is estimated to possess the fourth-largest shale gas reserves in Europe, informs
The Financial Times.

Production of synthesis gas became Ukraine’s latest environment-friendly effort to
reform country’s energy system. The construction of five plants producing syngas from coal
will start in Ukraine in 2013, according to the President of Ukraine Viktor Yanukovych.
The USD 3.5 billion worth project was agreed upon in autumn of 2012 and is currently in
the stage of designing the gas production facilities.

Ukraine began reforming its inefficient energy system by adopting the State Program on
Energy Efficiency 2010-2015. In September 2012, it was announced that Ukrainian
agroholding Avangard plans to build biogas producing facilities at two of its poultry
farms by 2013. To put the project to life, Ukrainian company will cooperate with Polish
state-owned company PGNIG-energy.

SOURCE Worldwide News Ukraine

Source: PR Newswire