Ukraine plans to sign contracts with U.S. companies on alternative gas production on its territory by the end of this year, Ukraine's fuel and energy minister said.

Some U.S. companies earlier took interest in production of coal-bed methane and shale gas in Ukraine.

"I am sure that we will formalize the agreements by the end of this year. We have very good perspectives for production of shale gas, but better perspectives for coal-bed methane production," Yuriy Boiko said in an interview with Ukraine's Inter television channel.

He said that, according to preliminary forecasts, in three to four years Ukraine will be capable of producing over 7 billion cubic meters of these alternative energy resources annually.

Alternative sources of natural gas extraction such as coal-bed methane and shale gas have become popular lately as Russia, Qatar and Iran, which account for about half of global natural gas reserves, have been reluctant to admit foreign companies to their gas deposits.

Many countries can boast large reserves of alternative gas, with up to 120 trillion cu m found in the United States, 100 billion cu m in Russia, 70 billion cu m in the Middle East, 36 billion cu m in China and 22 trillion cu m in Australia. Large reserves of alternative gas are also located in Canada, India, Germany, South Africa, Ukraine and Kazakhstan.

KIEV, June 12 (RIA Novosti)