Kyiv Post: Political will, investment key to boosting energy efficiency

As Ukraine struggles to persuade Russia to reduce the price for natural gas deliveries, officials in Kyiv have been scrambling to unlock alternative sources of supply.

Government officials have touted shale gas technology, liquefied natural gas and increasing domestic production through classic methods as ways to reduce Ukraine’s dependence on Russian imports, critical for the country’s gas-thirsty industry and households. Diversifying supplies will give Ukraine access to cheaper energy and reduce pressure on the country’s finances.

“Ukraine has significant potential and resources to meet much of its natural gas needs,” said Volodymyr Omelchenko, a prominent energy expert with think tank Razumkov Center. “It could cover 70 percent of its needs and double production to 40 billion cubic meters in 10-15 years.”

But critics say these sources need billions of dollars of foreign investment and will take years to bring on line, hindered by red tape, lack of commitment to expensive long-term projects and interests who want to maintain their profits from the lucrative Ukraine-Russia trade.  MORE