NPPs are not the only ones: “Ukrnafta plans to build $1bn worth of gas generation
3 July 2024 12:41
Ukrnafta, Ukraine’s largest oil company, has announced ambitious plans to expand its operations in the energy sector. The company’s CEO Sergiy Koretsky told Forbes about this, according to "Komersant Ukrainian"
According to the CEO, the company intends to invest about $1 billion in the construction of gas-fired power plants with a total capacity of over 1000 MW over the next three years.
The first stage of the project involves the installation of gas reciprocating units with a capacity of at least 100 MW.
The full implementation of the project is expected to take up to three years, with a payback period of four to five years depending on the type of plant. The projected lifetime of the new facilities is 20 years.
The project will be financed from the company’s own funds and credit lines from Ukrainian banks.
This initiative is part of Ukrnafta’s strategy to transform into a multi-energy company that reflects global trends in the energy sector.
“Ukrnafta is considering the introduction of gas turbine equipment and the development of renewable energy projects, including wind and solar power plants.
Ukrnafta’s intentions are not the only energy initiative of the Ukrainian government. Recently, the relevant committee of the Verkhovna Rada of Ukraine approved a government bill on the construction of two power units at the Khmelnytsky N PP and is now awaiting consideration in the session hall. The Razumkov Centre has criticised the government’s intentions, but some experts believe that only traitors or scoundrels are against the construction of nuclear power plants today.
Ukrnafta
Ukrnafta is Ukraine’s largest oil company, founded in 1994. It plays a key role in ensuring the country’s energy security by exploring, developing and producing oil and gas.
The company develops over 100 fields in Lviv, Ivano-Frankivsk, Chernihiv, Sumy and Poltava regions. Ukrnafta also operates a network of over 500 petrol stations across Ukraine.
Until 2022, Ukrnafta was majority owned by the state, represented by Naftogaz of Ukraine, and a significant share by Privat Group. In November 2022, the company was nationalised by the Ukrainian government under martial law.
Following the nationalisation, Ukrnafta has shown a significant improvement in its financial performance. In 2023, the company generated a record net profit of UAH 24 billion and paid UAH 27.2 billion in taxes and fees to the state budget.
Today, Ukrnafta is actively developing, planning large-scale investments in the energy sector, in particular in the construction of gas power plants and development of renewable energy. This strategy is aimed at transforming the company into a powerful player in the Ukrainian energy market.
