Ukraine increases gas production for second year in row
Ukraine increased gas production by 2.2% to 19.12 billion cubic metres (bcm) in 2024.
Source: calculations of ExPro, a consulting company that focuses on the development of Ukraine's oil and gas and energy sectors
Details: The growth rate of production in 2024 is higher than in 2023, when production increased by 0.9%.
Quote from ExPro: "In addition, this is the highest production growth since 2018. As a reminder, gas production volumes were declining from 2019 to 2022."
More details: Natural gas production in Ukraine fell in 2022 by 6% due to the Russian full-scale invasion. The publication adds that companies, especially state-owned ones, were already able to show an increase in gas production in 2023.
At the same time, state-owned companies remained the main driver of the increase in natural gas production in Ukraine in 2024.
Thus, the country's largest gas producer, state-owned UkrGasVydobuvannya, produced 14.55 billion cubic metres of gross natural gas last year, up 4.6% from 13.9 bcm in 2023.
UkrGasVydobuvannya's production volumes in 2024 were the highest in six years when the company's production amounted to 14.9 bcm in 2019.
At the same time, Ukrnafta PJSC produced 1.17 bcm of natural gas last year, which is 6.6% more than in 2023 (almost 1.1 bcm). This is the company's largest volume of natural gas production since 2016.
Quote from ExPro: "Private companies, on the other hand, reduced their natural gas production by 8% to over 3.4 bcm in 2024. Private companies' production is at its lowest level since at least 2016."
More details: It is noted that the further decline in production is due to the blocking of special permits, in particular, Ukrnaftoburinnia (UNB), a private oil and gas production company that did not produce natural gas from December 2023 to August 2024.
Quote from ExPro: "However, in August, UNB resumed production, which led to an increase in natural gas production by private companies compared to last year. Nevertheless, in November, the Ukrainian Geological Survey suspended Smart Energy's special permits again."
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