PM: Ukraine’s shale gas output to reach 30 bcm in 5–10 yrs

MOSCOW, Nov 30 (PRIME) -- Ukraine will produce 20–30 billion cubic meters of shale gas annually in the next 5–10 years, Prime Minister Nikolai Azarov said Friday, as cited by RIA Novosti.

Ukraine is striving to increase its own production of natural and shale gas amid lengthy and fruitless negotiations with Russia over reducing the price of imported gas.

Azarov said that the government has set a task to cut purchases of expensive Russian gas as much as possible and stimulate local energy production.

“We used to buy 50 billion and 40 billion cubic meters of gas from Russia. We have decided to purchase 18 billion–20 billion cubic meters in the short-term. All the remaining volume will be replaced by our own production alongside a set of measures to cut gas consumption,” Azarov said.

He said that Ukraine was ready to consider importing liquefied natural gas (LNG) from Norway for its future terminal.

“We expect that after the completion of the terminal, we will have the possibility to buy about 10 billion cubic meters of liquefied gas at current … spot prices, which are now about 60% lower than the Russian gas price,” Azarov said. “Here, we would cooperate with Norway, too.”

The LNG terminal costs 856 million euros, with 25% to be state-funded and 75% will be provided by private investors. The first stage of the terminal - with an annual capacity of 5 billion cubic meters of LNG - will be launched in 2016.

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