Methodical provisions on assessment of prospects of unconventional gas extraction in Ukraine

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Abstract

The article analyses unconventional gas resources in Ukraine and draws a conclusion that the existing assessments differ and require clarification. The article forms a characteristic of unconventional gas deposits in Ukraine. It analyses prospects of unconventional gas extraction from consolidated rock at the Hughes Site. It proves that the Hughes Site could satisfy the country requirements in tight sands gas (TSG) until 2030, which were determined in the “Renewed Energy Strategy” project, discussion of which was initiated in June 2012 by the Ministry of Energy and Coal Industry of Ukraine. The article conducts calculations of a number of mines required for extraction of the planned volume of TSG at the Hughes Site in 2020 – 2030 and required capital investments. It calculates the cost value of TSG extraction at the Hughes Site. It develops the schedule of investing into the Hughes Site and builds forecast scenarios of developing the Hughes Site in 2020 – 2030. On the basis of calculations it proves that only the optimistic scenario (when the selling price of gas would be USD 255 for 1 thousand cubic metres) ensures profitable development of the Hughes Site.