Platts: Ukraine sets shale gas agenda, but opposition grows

Ukraine sees the development of its vast shale gas resources as one answer to its dependence on Russian gas imports, and last week's $10 billion agreement with Shell to develop the Yuzivska shale gas reserves in eastern Ukraine is evidence of the pulling power of the country's potential.

Ukraine's energy minister Eduard Stavytskiy has said the project could produce up to 20 billion cubic meters/year of gas within a decade -- just about equal to the country's current imports of Russian gas.

Add to that the other shale gas projects underway in Ukraine -- with the likes of Chevron and Italy's Eni at the helm -- and a move away from Russian dependence seems a distinct possibility.

And there are also other unconventional gas projects being developed in Ukraine -- earlier this week the UK's Hutton Energy said its first well drilled to target tight gas at its block in the Donets Basin in eastern Ukraine had confirmed the presence of hydrocarbons.  

But obstacles remain in a country notorious for failing to get new upstream projects off the ground. 

Legal action is being prepared to challenge the Shell deal, both on technical and environmental grounds.  MORE