Ukrainian oil, gas and petrochemicals

Oil and gas

BMI has said that there is sustained major interest from major international companies in Ukraine’s gas reserves, showing that there is considerable underground potential. However, the worsening security situation above ground along with continuing political instability is negatively impacting interest moving forward. Also, recent tax hikes on oil, gas and mineral fuels are expected to act as a further deterrent to investment in the country’s oil and gas sector.

As of September last year, BMI reports that Ukraine stored 16.3 billion m³ of natural gas reserves in its underground gas stores to meet demand during the winter heating season of 2014/2015. The level of gas there collected 2.2 billion m³ in 2014, 14% more than in 2013. When it comes to oil, Ukraine is seeking supplies for its refineries from Azerbaijan. It has been stressed that the Ukraine plans to maintain friendly relations with Azerbaijan in the area of energy.

Petrochemicals

BMI has said that as the Ukraine is faced with civil war and economic meltdown along with the souring of relations with Russia, it has been cut off from major trade sources. For the petrochemicals sector, this is fatal as it severely limits feedstock imports as well as finished product exports. BMI has also said that the Ukrainian petrochemicals market may not recover by 2023 as the legacy of conflict will weigh down the country’s industrial base and the destruction of essential infrastructure.

Edited from report briefs by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/refining/18032015/oil-gas-petchem-bmi-ukraine/