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Ukraine’s shale gas cost to range from $120 to $130 per 1,000 cubic metres - PM

He reassured that the production of shale gas by Royal Dutch Shell would be absolutely safe from the environmental point of view

Photo EPA/ITAR-TASS

Photo EPA/ITAR-TASS

KIEV, September 13 (Itar-Tass) - Ukraine-produced shale gas will cost 120-130 U.S. dollars per one thousand cubic metres, Ukrainian Prime Minister Nikolai Azarov said on Friday.

“Now, we are buying Russian gas at a price of 530 U.S. dollars per 1,000 cubic meters, this is an unprecedented price globally,” he said in an interview with a local television channel. “At the same time, the cost of shale gas we plan to produce starting from 2015 will be in the range of 120-130 U.S. dollars, taking into account all the expenses.”

“Colossal amount of work is to be done before 2015 to assess the reserves, prepare and calculate logistics,” he said. “We plan to do all this in 2014 and begin the production from 2015.”

He reassured that the production of shale gas by Royal Dutch Shell would be absolutely safe from the environmental point of view.

On Thursday, Royal Dutch Shell and Ukraine’s Nadra Yuzovskaya signed an agreement on the exploration and production of gas in Ukraine. The agreement, signed during Ukrainian Prime Minister Nikolai Azarov’s visit to the Netherlands will allow both companies to start work at the Yuzovskoye field immediately. The field is believed to contain more than 4 trillion cubic metres of gas. Royal Dutch Shell is planning to allocate more than 500 million U.S. dollars for the exploratory work, and its overall investment in the project will reach 10 billion U.S. dollars. Ukrainian Minister of Energy and Coal Industry Eduard Stavitsky said the agreement would “reduce energy dependence on Russia.” The first effect is expected in 2015, with the energy dependence on Russia to be “brought to zero” by 2020.

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