Ukraine produced 20.7 bcm of gas in 2019 against 21.0 bcm in 2018, demonstrating a 300 mcm year-on-year decrease (nearly 1.4%).

UKRAINIAN GROSS GAS PRODUCTION (2015-2019, bcm)

Ukrgasvydobuvannya

Ukrgasvydobuvannya (UGV), which is part of Naftogaz group, produced 14.9 bcm of gas in 2019 (70.9% of Ukraine’s total). This includes 1.3 bcm used for operating needs.

In 2019, UGV decreased production by 600 mcm (3.9%) against 2018, with sales of marketable gas falling by only 1.5% – from 13.8 bcm to 13.6 bcm – compared to 2018.

The decline was due to a 1.5 bcm natural decrease in major production fields in 2019. UGV’s biggest field, the Shebelynkske field, was discovered in 1950 and is now 89% exhausted, Zakhidno- Khrestyshchenske – 90%, Yablunivske – 79%, Yefremivske – 82% and Melekhivske – 82%.  The peak of production in the mentioned fields was at the beginning of their development in 1960-1970.

UGV’s western branch increased production. In 2019, Lvivgazvydobuvannya produced 0.75 bcm (+3.2%), Shebelynkagazvydobuvannya – 8.27 bcm (-3.2%), Poltavagazvydobuvannya – 5.87 bcm (-5%).

Gas production by UGV, bcm

*Operating needs are defined as gas volumes used to produce, collect, treat and transmit gas to main pipelines. Besides operating needs, gross production includes gas used by UGV’s 11 branches for manufacturing LPG, refining hydrocarbons, heating and other needs.

Note. Figures in the table and the text may differ due to rounding.

Last year, UGV discovered three new fields with reserves of 2.15 bcm, and increased extractable reserves by almost 15 bcm.

Chornomornaftogaz, another upstream company 100% owned by Naftogaz, produced 8.9 mcm of gas in 2019, which is 1.4 mcm less than in 2018 (10.3 mcm). The company has been developing only one field – Strilkove – to satisfy the needs of the town of Henichesk in Kherson region.

Naftogaz bought all marketable gas produced by UGV and Chornomornaftogaz in 2019 at UAH 4190-6116/tcm net of VAT. The acquired gas was used to satisfy the needs of households, religious organizations, heat producers and other consumers which buy gas on regulated terms set by the Cabinet of Ministers of Ukraine (PSO).

Other producers

In 2019, Ukrnafta, 50%+1 share is owned by Naftogaz, increased gas production to 1.16 bcm, which is 7% more compared to 2018. The volume of marketable gas was 830.8 tcm.

Last year, private producers increased production, posting 4.5% growth from 4.4 to 4.6 bcm. It should be noted that most private producers have been developing new fields with lower natural decrease in production.