Transformation of Ukrainian energy sector is one of the main objectives facing Ukraine in the coming years, says Denys Shmyhal

During the Question Time for the Government at the Verkhovna Rada, Prime Minister Denys Shmyhal told about strategic steps towards energy security and strengthening Ukraine’s energy independence.

According to the Head of Government, work is currently underway to integrate Ukraine's energy system with the European ENTSO-E system.

"Almost all the necessary tasks have been completed so far, and Ukraine is ready for synchronization. Next month, a test operation of Ukraine's energy system is planned in isolation mode," said Denys Shmyhal.

According to the Prime Minister, enhancing domestic gas production is another step towards strengthening energy security. To this end, Ukraine is actively developing a public-private partnership instrument. He noted that as of now, 11 production sharing agreements had been signed which is over $ 10 billion in investment into exploration and initial infrastructure.

Denys Shmyhal also noted that Ukraine prolonged cooperation with European partners, in particular on the use of Ukrainian gas storage facilities, which are utilised for an average of 20-24 billion cubic meters with a volume of 33 billion cubic meters.

"Our gas storage facilities can be used as a gas safe for European companies. Already, foreign companies have kept part of their gas in the 'customs warehouse' storage regime on the territory of Ukraine, but we will negotiate with our European partners to make this process more systematic," assured the Prime Minister.

Moreover, Denys Shmyhal stressed that the Government was working on three main areas of reforming the coal industry: drilling stopes for promising mines to meet domestic needs; finding investors or a fair transformation for the rest of mines.

"Communities that depend on coal mines will receive preferences, finances and opportunities to start new businesses, while people will be able to get normal jobs that are not directly related to the coal industry. This year, we will launch the first two pilot projects on fair transformation in Myrnohrad and Chervonohrad," told the Prime Minister.

According to Denys Shmyhal, one of the most ambitious projects in the energy sector is the development of hydrogen energy. He stressed that Ukraine has significant potential in the production of clean energy and is determined to be one of the potential partners of the European Union in the production and supply of hydrogen.

"Therefore, we are focused on the development of hydrogen technologies and the creation of a hydrogen ecosystem. This will not only contribute to the green transition, strengthening Ukraine's energy independence, but will also allow for leveraging billions of dollars of investment in the transformation of our energy system," the Head of Government summed up.