Optimization and diversification of natural gas supply in Ukraine

Abstract

This article considers different variants of natural gas supply in Ukraine which are based on the main tendencies of natural gas regional markets and some important factors, such as: possibility to use natural gas storage system, different changes in government regulation and innovations in the energy generation and supply sphere. The purpose of this work is to substantiate the current gas supply strategy in Ukraine on the basis of quantitative methods. The main results of the article are: Numerical estimation of the positive effect, gained from the using of natural gas storage system; Numerical estimation of the positive effect from the diversification of the natural gas supply in Ukraine in terms of decreasing the potential role of Gazprom monopoly. The population response evaluation on the gas price rising. This article provides an effective tool for assessing the possible consequences of decisions of state bodies when moving away from the existing monopoly of gas supply system and the macroeconomic effect of different gas supply options. The quantitative assessment of the gradual convergence of regional markets and the creation of a global natural gas market is proposed