Ukraine plans unconventional gas production

Ukraine plans to sign contracts with U.S. companies for unconventional gas production prior to the end of this year, according to Fuel and Energy Minister Yuriy Boiko.

U.S. companies have taken an interest in potential coal-bed methane and shale gas resources in Ukraine.

"I am sure that we will formalize the agreements by the end of this year. We have very good perspectives for production of shale gas, but better perspectives for coal-bed methane production," Minister Boiko said in an interview with Ukraine's Inter television channel.

RIA Novosti reported the Minister said, that according to preliminary forecasts, Ukraine will be capable of producing over 7 billion cubic meters of these alternative energy resources annually commencing in three to four years.

Ukranian News Agency reported that on Wednesday, First Vice Prime Minister Andrii Kliuev announced plans to increase its domestic output of natural gas by 100% or 20 billion cubic metres to 40 billion cubic metres a year, over the next ten years.

The minister stated that Ukraine's shale deposits appear to be amongst the most prospective in Europe.

"We have held a series of negotiations and are now preparing areas for this," he said.