Page 68 - UKRRptSept22

Celsius lower. In particular, while the standard target temperature is 21°C (70 °F), this season, the temperature will only be 17-18 °C (63 °F). According to the CEO, the prospects of the heating season in Ukraine depend on whether international partners will provide the necessary money to import four billion cubic metres of gas. Vitrenko estimates the sum required to purchase this gas at $10B. “Without financial support, Ukraine will lack sufficient gas supplies, which means that we will face significant risks to the energy system,” said Vitrenko.
Gas consumption in Ukraine will decrease by about 40%. The Ministry of Energy predicts that this heating season, gas consumption will be 35-40% less than last year and will amount to 11.7 billion cubic metres. According to Ukrainian Parliament member Yaroslav Zheleznyak, Ukraine used 19.4 billion cubic metres during the heating period in 2021. This year, it is expected that 18.5 billion cubic metres will be consumed for the whole of 2022. This large difference is explained by a 35-40% drop in consumption, primarily due to migration by a large segment of the population and occupied territories that will not receive gas due to damaged infrastructure. Currently, the government is looking for additional gas volumes for the heating season. Under various scenarios, Ukraine still must purchase between 3-4.9 billion cubic metres of gas.
A new gas well was christened in Western Ukraine. The mining company Expert Petroleum launched a new gas well in the Lviv region with a production volume of 115,000 cubic metres of gas per day. According to state gas producer Ukrgazvydobuvannya, the well was drilled and put into operation in just 18 days. The well was launched within the framework of cooperation between the companies to increase production in depleted fields. Based on the results of the well’s completion, Expert Petroleum received 13 depleted gas fields in the Lviv region and undertook their management to increase production by 300 million cubic metres of gas within five years. Achieving this goal will require an investment of at least UAH 1B.
Ukraine has identified the gas production facilities in the Black Sea captured by Russia. The Cabinet of Ministers announced the list of 16 Chornomornaftogaz oil and gas production facilities seized by the Russian Federation. The following captured deposits are: Odesske, Bezymenne, North-Kerchenski, North-Bulganatske, the Schmidt, the Gubkina, Riftova, and Zahidolytsynska. In an appendix to the resolution, it is stated that geological exploration of the subsoil, including research and industrial development of deposits, was carried out in these areas. Further industrial oil and gas production was planned for three more sites - the Tarkhankut site, the Palas, and Lucytskyi. Also included in the list are five deposits where industrial mineral mining took place - Holitsynske, Stormove, Arkhangelsk, Skhidnokazantipske, and Northern Bulgan deposits.
Ukraine has lost many oil and processing assets due to the war. Since the full-scale Russian invasion of Ukraine, many oil and processing assets, underground gas storage facilities, and mining facilities have been lost. For example, according to CEO of Naftogaz Yury Vitrenko, the Shebelinsky gas processing plant is not operating and cannot resume work in the near future due to hostilities. Also, there are similar situations with the Kremenchuk Oil Refinery and Ukrtransnafta facilities that are targeted by missile attacks and have suffered damaged infrastructure. On the other hand, the situation with underground storage is less critical. There are storage facilities located in
68 UKRAINE Country Report September 2022 www.intellinews.com