Ukraine’s Oil and Gas Industry Supplies Only a Small Part of the Country’s Needs
As the Russian invasion of Ukraine continues, we at World Oil think it’s important to review the amount of oil and gas infrastructure that is at risk in Ukraine. Please note that some of the facts and figures cited here come from the U.S. Energy Information Administration (EIA).
Ukraine has been producing petroleum and other liquids, natural gas, coal, nuclear power, and renewable energy. However, the country’s energy demand regularly exceeds domestic energy supply. Natural gas represents nearly one-third of Ukraine’s primary energy consumption, followed by coal (30%) and nuclear (21%).
Natural gas. According to additional data supplied to World Oil, Ukrainian natural gas reserves totaled 25.4 Tcf at the end of 2021. During 2019, the country’s gas consumption was about 1.0 Tcf, or 50% lower than the 2010 level. Domestic natural gas output supposedly met over 70% of total consumption, with the remaining 30% supplied by imports, Fig. 1.
With the world’s largest gas transit infrastructure and lying adjacent to Russia, Ukraine has been a prominent transit country for Russian gas supplies to Europe.
Two major pipeline systems carry Russian gas through Ukraine to Western Europe. The Bratstvo (Brotherhood) pipeline—originating from Urengoy gas field—crosses from Ukraine to Slovakia and splits into two directions, supplying northern and southern European countries. The Soyuz (Union) pipeline—originating from Orenburg gas field— links Russia’s pipelines to natural gas networks in central Asia. It supplies additional gas to countries such as Slovakia, Hungary, and Romania. A third major pipeline through Ukraine delivers Russian gas to the Balkan countries and Turkey.
The newly completed TurkStream and nearly complete Nord Stream 2 pipelines have been expected to replace pipeline systems that previously passed through Ukraine. The decrease in flows of Russian gas through Ukraine would tend to reduce Ukraine’s role as a transit country for gas flowing from Russia to Europe. However, we must now see how the Russian invasion of Ukraine alters that picture.
Read the full article from World Oil here.
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