Naftogaz May Lease Out Ukrainian Underground Gas Storages

NJSC Naftogaz of Ukraine is investigating the leasing out of its underground gas storages to the companies that will produce gas in Ukraine

"The matter concerns possible lease of underground gas storages in the future for further supplies of gas, including shale gas extracted in Ukraine, to the European consumers. After all, they will have to store it somewhere. And we will give them that opportunity,"   said Naftogaz deputy chairman Vadym Chuprun.

Chuprun said that the company is in talks with ExxonMobil over the use of Ukrainian gas storage facilities.

The Naftogaz deputy head said thecompany has been holding cooperation discussions for the production of unconventional hydrocarbons with foreign companies, including ExxonMobil, Chevron, Halliburton, Total, RWE, Eni and Statoil.

He stressed that the year 2011 was a breakthrough for Ukraine to explore shale gas - a number of companies signed agreements of confidentiality and cooperation, as well as areas of interest.

Ukraine operates 13 underground gas storages (UGS) with total active capacity of more than 31 billion cubic meters. 12 gas storages and gas pipeline system are run by Ukrtransgaz, another gas storage - SJSC Chornomornaftogaz (AR Crimea), 100% owned by NJSC Naftogaz of Ukraine.

Source: UKRINFORM