Ukraine could be Eastern Europe’s ‘energy hub’

Ukraine has the potential to be the “energy hub” of Eastern Europe in the near future. During a meeting with Ukraine’s Prime Minister Mykola Azarov, the US State Department’s Special […]

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By Priyanka Shrestha

Ukraine has the potential to be the “energy hub” of Eastern Europe in the near future.

During a meeting with Ukraine’s Prime Minister Mykola Azarov, the US State Department’s Special Envoy and Coordinator for International Energy Affairs Carlos Pascual said current reforms taking place in Ukraine could help transform the nation.

Ukrainian reports claim he also noted the country’s plans are “complimentary to the actions and priorities” of Europe whilst referring to recent agreements between Ukraine and energy companies Shell and Chevron.

Mr Pascual said the projects could help Ukraine get an addition of 25 billion cubic metres of shale gas every year. Although the country has yet to develop its shale gas reserves, it has been projected to have the third largest deposits in Europe, containing 1.2 trillion cubic metres of gas, according to US estimates.

Last year Shell won the right to explore gas in the Yuzivske field in Eastern Ukraine.

Mr Pascual added the US has increased the production of shale gas from 1% in 2005 to 35% of the total gas production in 2012, which has allowed the nation to abandon importing hydrocarbons.