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Kyiv, Ukraine (SPX) Mar 01, 2011 Governments of Ukraine and the United States discussed further cooperation in the nuclear energy sector and signed a memorandum of cooperation in the field of shale gas exploration in Ukraine, as reports the press service of the Ministry of Energy and Coal Industry of Ukraine. The issues of the Ukrainian energy sources diversification such as LNG-terminal construction and exhausted gas fields rehabilitation were also discussed during the second session of a Ukrainian-American working group on energy security. The Minister of Energy and Coal Industry of Ukraine Yuriy Boyko emphasized the necessity to further develop Ukraine's cooperation with the U.S. in the nuclear energy sector in the area of nuclear plants' safety enhancement, extending life of existing reactors, nuclear fuel supplies and building storage facilities for the depleted fuel. He noted that Ukraine is interested to continue implementation of the International Nuclear Safety Program, the ten-year long (1993-2003) U.S. Department of Energy initiative in safety improvement of nuclear power plants built in the Soviet time. In addition to nuclear safety, the minister also discussed the ways to diversify Ukrainian energy production. One such method could be the increase of shale gas production, which has recently changed the situation at the world gas market. According to the preliminary scientific studies, Ukraine has significant potential for its shale gas bearing formations. Both Ukrainian and the U.S. governments plan to implement projects aimed at rehabilitation of the exhausted gas fields in Ukraine. Yuriy Boyko noted that the Ukrainian state-owned companies such as Naftogaz and Ukrnafta need technological cooperation to increase gas recovery in the insufficient or exhausted fields. Yuriy Boyko also spoke of the steps undertaken by the Ukrainian government in order to diversify energy resources and natural gas suppliers. "Ukraine is interested in cooperation with American energy companies in order to complete the LNG-terminal project," said the minister. Furthermore, Ukraine hopes to diversify the supply of liquefied natural gas from North Africa, Middle East and Azerbaijan. So far, Azerbaijan has confirmed its intention to sell Ukraine five billion cubic meters of LNG per year. The construction of the LNG terminal in the Black Sea region with the capacity of 10 billion cubic meters is planned for 2014.
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