Ukraine Cooperates With the United States in the Energy Sector

KYIV, Ukraine, February 21, 2011 /PRNewswire/ — Governments of Ukraine
and the United States discussed further cooperation in the nuclear energy
sector and signed a memorandum of cooperation in the field of shale gas
exploration in Ukraine, as reports the press service of the Ministry of
Energy and Coal Industry of Ukraine. The issues of the Ukrainian energy
sources diversification such as LNG-terminal construction and exhausted gas
fields rehabilitation were also discussed during the second session of a
Ukrainian-American working group on energy security.

The Minister of Energy and Coal Industry of Ukraine Yuriy Boyko
emphasized the necessity to further develop Ukraine’s cooperation with the
U.S. in the nuclear energy sector in the area of nuclear plants’ safety
enhancement, extending life of existing reactors, nuclear fuel supplies and
building storage facilities for the depleted fuel. He noted that Ukraine is
interested to continue implementation of the International Nuclear Safety
Program, the ten-year long (1993-2003) U.S. Department of Energy initiative
in safety improvement of nuclear power plants built in the Soviet time.

In addition to nuclear safety, the minister also discussed the ways to
diversify Ukrainian energy production. One such method could be the increase
of shale gas production, which has recently changed the situation at the
world gas market. According to the preliminary scientific studies, Ukraine
has significant potential for its shale gas bearing formations.

Both Ukrainian and the U.S. governments plan to implement projects aimed
at rehabilitation of the exhausted gas fields in Ukraine. Yuriy Boyko noted
that the Ukrainian state-owned companies such as Naftogaz and Ukrnafta need
technological cooperation to increase gas recovery in the insufficient or
exhausted fields.

Yuriy Boyko also spoke of the steps undertaken by the Ukrainian
government in order to diversify energy resources and natural gas suppliers.
“Ukraine is interested in cooperation with American energy companies in order
to complete the LNG-terminal project,” said the minister.

Furthermore, Ukraine hopes to diversify the supply of liquefied natural
gas from North Africa, Middle East and Azerbaijan. So far, Azerbaijan has
confirmed its intention to sell Ukraine five billion cubic meters of LNG per
year. The construction of the LNG terminal in the Black Sea region with the
capacity of 10 billion cubic meters is planned for 2014.

SOURCE Worldwide News Ukraine