Ukraine increased natural gas production by 2.2% to 19.12 bcm in 2024

Gross natural gas production in Ukraine amounted to 19.12 bcm in 2024, according to ExPro calculations. Gas production increased by 2.2% compared to the previous year - from 18.7 to 19.12 bcm.

Details

Natural gas production in Ukraine is growing despite the full-scale war that has been going on for almost three years. This year's production growth rate is higher than last year's 0.9%. In addition, this is the highest production growth since 2018. As a reminder, gas production volumes were declining from 2019 to 2022.

In 2022, natural gas production in Ukraine fell by 6% due to Russia's full-scale invasion. However, in 2023, companies, primarily state-owned ones, increased their production.

State-owned companies remain the main driver of the increase in natural gas production in Ukraine in 2024, while private companies still show a decline in production. Nevertheless, private companies' production is also growing in the second half of the year compared to the previous year.

Companies

The country's largest gas producer, state-owned Ukrgazvydobuvannya JSC, produced 14.55 bcm of gross natural gas in 2024, up 4.6% from 13.9 bcm in 2023. This year's production volumes of Ukrgasvydobuvannya are the highest in 6 years when UGV production amounted to 14.9 bcm in 2019.

Commercial gas production by Ukrgasvydobuvannya increased by 5.1% to 13.9 bcm in 2024, the company's highest annual figure since 2014. Record active drilling and workovers resulted in a significant increase in state-owned company gas production.

In 2024, Ukrnafta PJSC produced 1.17 bcm of natural gas, up 6.6% year-on-year (almost 1.1 bcm). In 2024, Ukrnafta continued to increase drilling, workovers, and other operations, which helped to increase natural gas production. Private companies, on the other hand, reduced their natural gas production by 8% to over 3.4 bcm in 2024.

Private companies' production is at its lowest level since at least 2016. The further decline in production is due to the blocking of special permits, particularly Ukrnaftoburinnya, which did not produce natural gas from December 2023 to August 2024. However, in August, UNB resumed production, which led to an increase in natural gas production by private companies compared to last year. Nevertheless, in November, the Ukrainian Geological Survey suspended Smart Energy's special permits again.

Conclusions

Ukrainian gas production continues to develop in the difficult conditions of a full-scale war. State-owned companies are showing good results and have ambitious production plans for the next year. Private companies are also gradually increasing their investments in domestic gas production and have the potential to increase it, provided there are no obstacles from government regulation.

Read more about natural gas production in Ukraine, including production by private companies, in the ExPro Gas&Oil Monthly.