Gas is an important part of energy in Ukraine. About 20 billion cubic meters of fossil gas is extracted each year, and since 2022 this has almost met demand, which in winter can reach 150 mcm a day. Ukraine has the largest gas storage in Europe.

Ukraine has been estimated to possess natural gas reserves of over 670 billion cubic meters (in 2022).

Domestic production peaked in 1975 at 68.1 billion cubic meters (bcm). Since then production gradually declined, stabilising in recent years at around 20 bcm.

Ukraine aimed to increase natural gas production in the Black Sea from 1 bcm in 2011 to 3 bcm in 2015. In 2012, Black Sea production reached 1.2 bcm and was predicted to rise to 1.65 bcm in 2013.

In 2012, Naftogaz and China Development Bank signed a deal to switch power and chemical production plants from natural gas to coal gasification technologies developed by China in order to reduce reliance on imported gas.

Over 70% of domestic gas production is extracted by UkrGasVydobuvannya, a subsidiary of the state-owned company Naftogaz. Private gas production companies in Ukraine are DTEK, Ukrnaftoburinnya, Burisma, Smart Energy, Poltava Petroleum Company, Geo Alliance Group, and KUB-GAS.

During Soviet times, Ukraine produced a record of 68.7 bcm in 1976. At the time of independence in 1991, production was at 26.6 bcm, and fell in the 1990s to about 18 bcm. Since the mid-2000s, production stabilised between 20 and 21 bcm, but was damaged by Russian attacks.

Ukraine is a major natural gas consumer, being ranked thirteenth in the world and fifth in Europe. Consumption levels have fallen from 118 bcm in 1991 to less than 55 bcm in 2012, and from 50.4 bcm in 2013 to 29.8 bcm in 2019. Heavy industry is the largest consumer of natural gas in Ukraine (accounting for 40% of domestic consumption), followed by households (over 30%), and communal heating systems for government buildings and residential properties (20%).^{[needs update]}