Ukraine’s energy policy and prospects for the gas sector
In the last ten years, Ukraine has sharply reduced its dependence on gas imports, and stopped direct purchases from Russia. In the next ten years, the gas sector will be shaped by Ukraine’s own policy choices. Key issues include the potential role of gas in electricity generation, as coal is phased out. On the consumption side, heat sector reform could produce significant reductions in gas demand. On production, the challenge in the coming years will be to maintain output at around 20 bcm/year, Ukraine is also faced with managing the decline of its gas transportation business, as continued reduction of east-west flows is the most likely prospect.
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