On meeting dadicated to gas deliveries during sharp cold spell
Release
Today Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee has convened at Gazprom’s Headquarters a meeting dedicated to gas deliveries to domestic and foreign consumers during the sharp cold spell. Present at the meeting were the heads of the core production units, Marketing and Gas & Liquid Hydrocarbon Processing Department, Mezhregiongaz and Gazexport.
The meeting reported that during January 16–25 Gazprom had additionally supplied Russian consumers with 2.2 bcm of gas. Industrial consumers however are still not fulfilling the schedule of their switching to standby energy sources (Schedule №1), with only roughly 45 mln cu m of gas daily spared out of the 211.5 mln cu m required.
Given the average temperature rises in Russia, the meeting decided to reduce the number of the regions operating under Schedule №1.
A focus of the meeting fell on sustainable gas supply to Europe during the exceptionally cold weather period. As it was underscored, the amount of gas supplied to outside the FSU by the Yamal-Europe and Blue Stream gas pipelines had been in excess of existing contractual transit commitments.
At the same time Gazprom is particularly concerned with the irresponsible actions of the Ukrainian side continuing to make unsanctioned withdrawals of Russian natural gas consigned to Europe. Ukraine’s extra retrievals of Russian gas reached 80 mln cu m daily. As a result Ukraine caused Europe’s 326 mln cu m shortfall in natural gas supplies during January 19–25.
The meeting decided to send another telegram to Naftogaz Ukraine and demand that Ukraine should cease extra gas withdrawals and strictly abide by the existing Contract on Russian gas transit via its territory.
“In a situation when the severest frost is hitting practically all the European countries, Ukraine is taking advantage of its position as a transit country to meet its gas needs at the expense of European consumers by not only surpassing its own gas quotas but also withdrawing the Russian gas destined for Europe. The cold spell has showed that Ukraine is the only transiting country flagrantly violating the international standards of gas business. In effect, this means that the Ukrainian energy sector is completely uncontrollable” stated Alexander Ananenkov.
Background
To secure uninterrupted gas supply to the household sector, Gazprom has started operating under a schedule stipulating the conversion of Russian industrial consumers to standby energy sources (Schedule №1). Subject to annual endorsement by regional authorities, Schedule №1 obliges industrial consumers to have backup fuels stockpiled for the autumn-winter heating season.
Applied under Article19 of the Regulations on Gas Supply in the RF, approved by the RF Government’s Directive №162 from February 5 1998, Schedule №1 prescribes partial conversion of customers to standby energy sources (fuel oil, peat, coal, etc.) to spare an amount of gas for meeting increased demand of the residential sector.
Conversion to backup fuels and their timely procurement is fixed in contracts with all industrial consumers.
Information Directorate, OAO Gazprom