24.03.2025
For two years in a row, Ukraine has been increasing gas production. In 2023-2024, companies drilled a record number of wells even in difficult conditions, invested in the sector, maximized gas production and are not going to stop. After all, domestic production is a priority for Ukraine, and it remains the basis for preparing for the next heating seasons.
This was emphasized by an analyst of the Association of Gas Producers of Ukraine Yuriy Slazhniev on the Energy Freedom broadcast on March 7. The experts discussed the results of the winter of 2024/2025, challenges, recovery and prospects for the development of the energy sector.
“This year, in particular, due to attacks on gas production, we will be forced to import gas, which has already been publicly discussed by both the Naftogaz group and the Ministry of Energy. But, in addition to next winter, there will still be a lot of ODR ahead. And our current steps, mechanisms, and movements directly affect the balance that will be in the future. We need to prepare and rely, first of all, on our own capacities. They will guarantee our energy and national security”, the expert is convinced.
The priority for the energy sector remains the basic market needs that affect the further development and increase in production. These are safety, stability of the rules of the game, clear fiscal policy and long-term market conditions for the private sector, – said Yuriy Slazhnev.
“We cannot influence some factors, for example, security, given that the main fields and reserves are located in the East, and 90% of production is in the Kharkiv and Poltava regions. It is important to note that any attack by the enemy on the energy system of Ukraine, in particular on production facilities or infrastructure, affects production volumes and in some regions even on gas supply. It is important to understand that such attacks not only cause destruction, but also create additional financial pressure on companies, take time and money to eliminate the consequences, carry out restoration work, and therefore reduce the efficiency of work. Due to martial law, there is a lack of contractors, foreign technologies, and service companies that cannot work in dangerous conditions, – stated an analyst of the Association of Gas Extracting Companies of Ukraine.
Regarding the stability of the rules of the game and taxation conditions, our Association implemented many initiatives even before the start of the full-scale invasion, in particular, it introduced stimulating taxation for new drilling, as a result of which the number of new wells increased significantly. Thanks to this, companies can increase production even during 2023-2024, despite the fact that we are really being attacked on a large scale.
Well, the private sector must understand long-term market conditions. Gas trade in Ukraine must develop and scale up. Buying Ukrainian gas on the exchange is the only option for selling the resource to private individuals, and it needs to be modified, taking into account today’s reality.
