Ukraine Targets Gas Deliveries to Europe

Ukraine plans to increase its own gas production up to 25 billion cubic meters by 2015 and start selling the excess amount of gas to Europe.

Energy Minister Yuri Boiko made the comment in Kiev today, also mentioning that the planned increase would not affect its current gas contracts with Russia.

According to Boiko, Ukraine produces 20 billion cubic meters of gas annually. This amount will increase by 25 percent in three years, as a result of the recently signed contract with Shell on joint gas extraction.

Ukraine plans to sign five more contracts with companies to develop its gas resources within the next two months, said the minister.

During a briefing the energy minister mentioned that Ukraine will continue buying gas from Russia according to the existing contracts.

"We will buy as much gas [from Russia] as our economy needs. If we are offered more gas we will gladly buy it, given our advantageous transit location and the availability of the storage facilities," said the minister.

"Granted, we will resell our own gas to Europe when the prices peak and it's most beneficial for us," added Boiko.

In addition, Boiko stressed that Ukraine will continue introducing measures to reduce its domestic gas consumption.

Ukraine has already informed its Russia that it intends to reduce gas purchases to a level of 27 billion cubic meters in 2012 vs. 40 billion in 2011.

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