The United States Agency for International Development (USAID), through the USAID Energy Security Project (ESP), delivered more than 6,000 tons of methanol worth over EUR 4 mln to JSC Ukrgasvydobuvannya, the largest gas producer in Central and Eastern Europe. The methanol procured by USAID helps to ensure the production of Ukrainian gas for the needs of households, companies, and industrial consumers.
Amid Russia’s full-scale invasion when most methanol suppliers stopped their work, USAID helped Ukraine to establish a new supply route for methanol from the European Union. Assistance to Ukrgasvydobuvannya, which produces 70% of Ukrainian gas, is a significant contribution of USAID in the stable gas supply of domestic production to Ukraine. The methanol provided by USAID to Ukrgasvydobuvannya is enough to satisfy 20% of the company's annual needs.
“Methanol is critically important for Ukrgasvydobuvannya. Ukrgasvydobuvannya needs approximately 28,000 tons of methanol annually to prevent hydrating in wells and pipelines during natural gas production and transportation, as well as testing of the new and re-entry of the old gas wells. USAID assistance facilitates domestic gas production and will help keep production volume at the expected level, which is critical for reliable gas supply. This aid will additionally support uninterrupted gas production and contribute to the accumulation of strategic methanol reserves,” Justin Goonesinghe, Gas Sector Lead of the USAID Energy Security Project, said.
"We highly appreciate the support of international partners in this difficult time for Ukraine. With the beginning of a full-scale war in Ukraine, there was a shortage of many materials and equipment for gas production. Therefore, since last year, we have been negotiating with companies and organizations from all over the world asking for their help to preserve the stable production processes. USAID representatives were among the first to respond to our request and provided tangible assistance at difficult times. We are grateful to USAID and look forward to further cooperation," Oleg Tolmachev, Acting CEO of Ukrgasvydobuvannya said.
Ukraine plays an important role in the European gas market: it occupies a leading position in Europe in terms of the capacity of underground gas storage facilities and the volume of gas production. USAID will continue to provide assistance aimed at supporting the country's gas production sector and providing domestically produced natural gas to the population, DH companies, and industrial consumers.
About USAID in Ukraine: U.S. Agency for International Development (USAID) is the leading development agency of the U.S. government. USAID has partnered with Ukraine since 1992, supporting Ukraine to build resilience against Russia’s aggression and advance its democratic and economic development. Currently, 42 USAID activities respond to immediate needs and advance Ukraine’s long-term development as an independent, sovereign, democratic, and prosperous society. Since the start of Russia’s full-scale war on February 24, 2022, USAID has provided $18 billion in direct budget support, $1.4 billion in humanitarian assistance, and more than $1.4 billion in development assistance.
About Ukrgasvydobuvannya: Ukrgasvydobuvannya is the largest gas production company in Central and Eastern Europe, it is a part of the Naftogaz Group, the national oil and gas company of Ukraine. Ukrgasvydobuvannyaprovides more than 70% of Ukrainian natural gas production. Ukrgasvydobuvannya provides a full cycle of hydrocarbon production – from exploration activities in oil and gas deposits to the development and production, processing of hydrocarbons, and sale of oil refining products.