Explained: Options for Poland and Bulgaria after Russia supply halt



Russia’s Gazprom halted natural gas supplies to and Bulgaria on Wednesday as Moscow presses its demand for payment in roubles by countries it deems “unfriendly”.


Here are key points regarding how the two countries are equipped to respond:





HOW ARE AND BULGARIA SUPPLIED?


Gazprom supplies almost half of Poland’s annual needs – 10 billion cubic metres (bcm) versus total consumption of over 20 bcm. Less than 8% of gas is used to generate electricity, with nearly 80% powered by coal. Top industrial consumers of gas were not affected by the halt. The contingency measures that could affect them to shield households hopefully will not be used, the Polish premier said on Wednesday.


covers the rest of its needs with 6.2 bcm via liquefied natural gas (LNG) deliveries shipped to its terminal at Swinoujscie, about 4 bcm in local production and up to 3 bcm piped from the Czech Republic and Germany.


Bulgaria consumes about 3 bcm of gas per year, and about 90% of that comes from Gazprom imports via Turkey. The country also gets small quantities of gas from Azerbaijan.


HOW MUCH GAS IS IN STORAGE?


Poland’s gas storage of 3.5 bcm is 76% full, double its level a year ago, operator data shows, giving it a comfortable cushion to keep supplying customers as requested with the heating season over and consumption usually down to about 1 bcm per month in the warm season.


Bulgaria’s gas storage of 550 million cubic metres is only 17.6% full, according to operator data.


WHAT ARE THE ALTERNATIVE SUPPLY OPTIONS?


Poland can source gas via two links with Germany including reverse flows along the Yamal-Europe pipeline while an interconnector with the Czech Republic can supply up to 1.5 bcm annually.


Three further links are due to open this year – a link with Lithuania with an annual capacity of 2.5 bcm on May 1, one with Slovakia with a capacity of 5-6 bcm later in the year, and a 10 bcm pipeline with Norway in October.


Bulgaria will opt to import gas from Greece and Turkey, which can be topped up with imports from LNG terminals in these countries. It will also seek an option to tap common EU gas purchases, its energy minister said.


It plans to complete an interconnector with Greece in June that will allow it to import 1 bcm per year of Azeri gas. At present Bulgaria imports about of third of the quantities provided for under its contract for Azeri gas.


HOW LONG CAN POLAND AND BULGARIA LAST WITHOUT GAZPROM GAS?


Poland’s current and pending alternative supply routes suggest Warsaw is safe without Gazprom supply for several months, minister in charge of energy security Piotr Naimski said.


The Bulgarian government said deliveries to consumers have been secured for at least a month ahead and it does not plan to restrict supply for the time being.


Analysts say Sofia should urgently sign deals with LNG suppliers Qatar, Algeria and the United States as well as work to increase Azeri deliveries.


Bulgaria should also seek to sign solidarity agreements with Romania and Greece to ensure it can use any spare gas they have, analysts said.


(Reporting by Marek Strzelecki and Tsvetelia Tsolova; editing by Jason Neely and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



Source link

Latest

“Grow up”: Teen backed for brutal takedown of “deadbeat” older brother

Members of a popular internet forum were quick to...

Illinois Governor’s Race Shows G.O.P.’s Lurch to Right (With Nudge From Left)

Republican voters in Illinois nominated a conservative hard-liner for...

In Russia Crisis, India Tries to Balance Geopolitics and Economics

When Russia first invaded Ukraine, the United States warned...

Host Sea Dogs set to battle Bulldogs in Memorial Cup final

SAINT JOHN, N.B. -- Two teams that skated through...

KCR Opens T-Hub Second Phase, Says Telangana Wants to be Known as Startup State of India

Telangana Chief Minister K Chandrasekhar Rao said the T-Hub was founded to bring the best talent from across the country to create a startup...

Dera Bassi firing: Mohali SSP orders FIR against sub-inspector, others

A day after a 24-year-old was shot in his leg by a police team, Mohali Senior Superintendent of Police (SSP), Vivek Sheel Soni, on...