Ukraine reduced gas production by 5% in 9 months of 2022 - to almost 14 bcm

Ukraine produced 13.95 bcm of natural gas in Jan-Sep 2022, 5% less than in the same period last year. This is evidenced by ExPro calculations, the data may be clarified after the publication of official data.

State Ukrgazvydobuvannya JSC (UGV) produced almost 10 bcm of natural gas in 9 months of 2022, 2% less than last year. The reduction of the company's production is observed in the fields in the East of the country, while the production in the West is increasing.

During the first 9 months of 2022, Ukrnafta PJSC produced about 770 mcm of natural gas, 8% less than last year.

At the same time, private companies produced more than 3.2 bcm of gas in 9 months of 2022, 13% less than in the same period last year.

The reduction of production to the lowest level in recent years is directly related to the full-scale war that has been going on in Ukraine for more than 8 months. Gas production was most affected in Kharkiv and Donetsk regions, and to a lesser extent in Poltava, Sumy, and Chernihiv regions.

However, after the collapse in the first months after the Russian invasion, at the beginning of autumn, there is a certain increase in gas production. The de-occupation of the Kharkiv region allowed companies to resume production in this territory, as well as carry out drilling and well repair work.

In addition, the adoption of changes to the Tax Code of Ukraine, which tied the rent for natural gas to prices on the domestic market, allowed private production companies to return to investments in gas production. However, it is still difficult to find buyers for the produced gas.

According to Baker Hughes, in September the number of working drilling rigs in Ukraine increased to 27 against 23 in August. This is the highest level since pre-war February 2022. UGV also announced record volumes of drilling in September 2022 - more than 30,000 m.

During September 2022, Ukraine produced more than 1.54 bcm of natural gas, according to ExPro calculations. Compared to September last year, gas production decreased by 6% (100 mcm). Average daily gas production in September increased to 51.5 mcm per day (+3.5% compared to August).

According to ExPro's calculations, with current production at the end of the year, gas production in Ukraine will be about 18.7-18.8 bcm, 5% less than last year.

More detailed information on natural gas production in Ukraine is available monthly to subscribers of ExPro Gas&Oil Monthly.