Naftogaz ramps up gas production in western Ukraine

Naftogaz Group is increasing gas production western Ukraine with the use of new technologies and equipment. In particular, Lvivgasvydobuvannya Gas Production Division, one of three divisions of the JSC Ukrgasvydobuvannya and the operator of deposits in five western regions, has transferred 2% more natural gas to the transportation system year-on-year than in 2021. Naftogaz CEO Yuriy Vitrenko spoke about these production increases during a working visit to one of gas deposits in Lviv region together with Maksym Kozytsky, head of the Lviv Military Administration.

According to Vitrenko, Ukraine’s energy security demands maximum self-sufficiency in the provision of energy sources. Even during the current wartime conditions, Naftogaz utilizes all available options to boost gas production.

“Last year we started to ramp up production values and had all the potential to maintain this trend during the current year. Due to military action our company has lost several wells. However, thanks to the efforts of our employees, production decreases are minimal at just two percent year-to-date. In comparison, private companies experienced an 11 percent decline in reduction. In view of situation in our country, we are planning to intensify the development of deposits in western Ukraine, where productivity potential is quite high. The drilling of a deviating hole we observed today is one such project. Meanwhile, our Company resumes works on damaged or shuttered facilities in the east of the country. As our army wins back territory, next year we are planning to increase production volumes,” Vitrenko noted.

According to Vitrenko, every year Naftogaz increases capital investments in exploration and production to reach established targets. Next year, investments will rise by 15% upon approval of the Naftogaz Financial Plan by the government.

Stabilization and increases in domestic gas production are among the most important factors bringing Ukraine closer to energy independence and ensuring a smooth heating season in 2022-2023 for the country. In view of the war unleashed by Russia and unprecedentedly high price for gas in global markets, this season may become one of the most complicated periods in the entire history of independent Ukraine.

Maxym Kozytsky noted that innovations and investments made by Naftogaz are very important for the region. “Lviv region is well-known for its gas production activities. I’m very pleased to see that Naftogaz implements new gas production technologies in Lviv region, for example 3D seismic studies to enable the detection of new gas reservoirs and ramp up production. We see that investment in the Lviv gas sector has a meaningful effect. People have jobs, the country has gas, and the state receives taxes. I hope that next year, Naftogaz will invest in deep drilling and exploration of new deposits in the region. Investments in seismic studies must also be continued. This will help to increase gas output and, as a result, ensure heating for more Ukrainians,” Kozytsky said.

“Ukraine is struggling now and our company is struggling as well. We fight for every cubic meter of gas. We know the gas situation in Europe and are aware of the significance of our work. We are doing our best to increase domestic gas production,” commented Oleksandr Sendeha, director of Lvivgasvydobuvannya.

Commenting on preparations for the coming heating season, Vitrenko stressed that the current infrastructural readiness of Ukraine’s underground gas storage facilities is 100%. 13.9 bcm has already been pumped into storage and the pumping process is underway. Naftogaz has also initiated gas purchases from private producers, with over 200 mcm purchased to date.

Naftogaz has also started implementation of projects for the construction of a number of biofuel CHP facilities.

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