Azerbaijan, Baku, Jan. 7 / Trend , S.Aliyev /
The gas confrontation between Moscow and Kiev reached its peak. Russia has completely stopped gas supplies to Ukraine. The significant is that Europe, which calls both sides to fulfill assumed obligations on gas supplies, suffers from the conflict more. Today, the last fourth pipe, through which gas delivered to Ukraine and by transit to the Old World via the territory of this country, was closed. Thus, the gas supply to European countries via the territory of Ukraine was completely stopped.
Despite the gas contradiction caused by non-agreed gas prices, which Russia delivers to Ukraine, the gas supply was stopped Ukraine does not feel serious problems. According to experts, Ukraine provides the gas demand by means of its own production and gas, which was stored in under ground gas reserves.
Russia's Gazprom suspended gas supplies to Ukraine on Jan. 1 as the country has yet to sign a contract for 2009. According to Gazprom officials, Ukraine began illegal consuming gas transited via its territory to other countries. As a result, last day European consumers received 60 million cubic meters of gas less than expected.
Russian gas supplies via Ukraine to Bulgaria, Bosnia, Croatia, Macedonia, Serbia, Hungary, Turkey and Greece have been suspended.
On Jan.5, the volume of gas deliveries totaled 314.6 million cubic metres of gas per year, when Russia cuts the volume of deliveries though the territory of Ukraine.
The situation showed once again the significance of diversification of energy resources delivery to Europe. The dependence from delivery only from the one direction will cause similar problems in the future, until the construction of alternative gas supply routes, in particular from the Caspian region, Iran and Iraq. Europe's problem is not in gas supply suspension, but in dependence from the one supplier that hinders to pliably react on the appeared problems and compete to cut gas price.
The shortest term to complete the construction of an alternative route of Nabucco gas pipeline is 2013. The construction of some routes, including gas pipelines ITGI (Turkey-Greece-Italy) and TAP (Tran Adriatic pipeline) are expected to be completed in the same period.
Despite the situation for the time was forecasted (in fact it reiterates winter events of 2006 when because of disputes concerning gas cost Ukraine began to select from transit volumes of Russia's gas assigned for Old World (Europe, Asia, Africa) suffered heavy winter) decisive steps from Europe to provide alternative supplies weren't made.
Despite the situation for the time was forecasted (in fact it reiterates winter events of 2006 when because of disputes concerning gas cost Ukraine began to select from transit volumes of Russia's gas assigned for Old World (Europe, Asia, Africa) suffered heavy winter) decisive steps from Europe to provide alternative supplies weren't made.
Thus, creation of alternative routes for gas supply to Europe is significant not only to meet growing demands in energy resources, but also to provide security of supplies. Moreover, the annual increase in gas prices is not put in doubt. Despite gas prices are related with oil prices on world markets, the experience shows that decline in oil prices do not lead to cut of gas prices. Presence of new gas supply resources may have a significant influence on competitive prices.
The Italian Edison company forecasts that the gas demand in Europe to 2014 will increase by 15 percent to 648 billion cubic metres per year. To 2020, the usage of gas in Europe, where Edison included the EU 27 states, Norway, Switzerland and Turkey will rise to 720 billion cubic metres per year.
Electric-power production companies will account for most of Europe's gas demand in 2014, or 232 billion cubic meters annually. The population will account for 210 billion cubic meters, and the industrial sector for 181 billion cubic meters.
A similar situation will be seen in 2020 when electric-power production will require 274 billion cubic meters of gas. The population's demand will increase to 224 billion cubic meters, and industrial companies will use 193 billion cubic meters.
Edison forecasts a dramatic increase in Europe's dependence on gas imports by 2020. Gas purchases will account for 470 billion cubic meters of Europe's 720-billion-cubic-meter gas need. Some 290-320 billion cubic meters will be imported through pipelines. Liquefied gas purchases will account for 150-180 billion cubic meters.
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