KYIV, Ukraine, January 25, 2012 /PRNewswire/ --

Ukraine is capable of producing 60-70 billion cubic meters of gas, stated Daniel Yergin, Executive Vice President, IHS Cambridge Energy Research Associates, Inc. (IHS CERA)  Chairman. The international energy expert, however, pointed out that the country would be able to triple its gas production only if it manages to create a favorable investment climate.

"The economic potential [of Ukraine] is rather high," commented Daniel Yergin. "It is necessary to create favorable regulatory and market conditions to promote investment inflow," concluded the energy expert.

Ukraine can sufficiently grow the volumes of gas production before 2035 - up to 73 billion cubic meters, according to the research, conducted by the IHS CERA consulting company. Daniel Yergin, however, explained that in order to use up its potential, the country has to attract 1-10 billion dollars in foreign investments annually, reports VOA. Sufficient part of such investments should be provided by private investors, pointed out the expert at the Executive Conference:  Natural Gas and Ukraine's Energy Future (the conference was co-hosted by the IHS CERA and Ukraine's Ministry of Energy and Coal Industry in Kyiv on January 18-19, 2012).

Ukraine has already managed to stop the decline of traditional gas production and is set to increase it within the next three years. The President of Ukraine Viktor Yanukovych in his recent interview for almanac Ukraine and World 2012. Global Agenda (joint project of New York Times News Service & Syndicate and Segodnya Multimedia) stated: "We [Ukraine] have managed to increase coal production by 14 million tons in just two years. This is a notable achievement and we will continue our work in that direction." In 2011 Ukraine produced 82 million tons of coal, creating energy surplus of at least five million tons. The increase may facilitate the beginning of the industry transfer from expensive Russian gas to local coal. The president also highlighted the importance of developing alternative energy sources in the country.

Currently Ukraine extracts around 20 billion of cubical meters of gas a year. At the same time the country uses up to 55 billion cubic meters of gas annually; most of the gas being imported from Russia.

SOURCE Worldwide News Ukraine