Prime Minister: Shale Gas Production Powerful Impetus for Ukraine

Shale gas output is a powerful impetus for the development of the economy of Ukraine, the Prime Minister of Ukraine Mykola Azarov said in an interview with the Russia 24 TV channel.

“The scale of reserves of shale gas in Ukraine is estimated somewhere around 4.5 trillion cubic meters. It would be enough for 100-150 years. Do I have to say what it is a powerful impetus to the development of the country? It is a gas in the center of Europe and it is on an industrial scale,” Mykola Azarov said.

At the same time he also said that the Government is focused on the fact that “this may be the cost of, so to speak, on a well, 140, 150, 160 dollars for 1 thousand cubic meters approximately, and in retail it may be about 200 dollars.”

“Of course, these are competitive figures for us that allow our industry to work,” the Prime Minister said.

“Maybe in some way Gazprom don’t like this, but it’s them own fault. If they have not “choked” us with these prices for three years, maybe we would not start to extract shale gas. It is possible. We have a number of other problems, but once they pushed us to this, we are not going back,” Mykola Azarov added.

He also noted that Ukraine has studied American, Canadian, Polish experience in shale gas production matter. “We know both pros and cons. We know the risks. But we also know if we do not disturb the technique if we do everything in accordance with the agreement, and we have reached such agreements and clearly defined, then, of course, the risks will be minimized,” Mykola Azarov said, adding that while implementing the project the continuous monitoring of the environment to be carried out, mining will be as open as possible, including to any public organizations.

[mappress]

LNG World News Staff, September 25, 2013; Image: kmu.gov