Russian gas dispute poses no threat to Irish supplies
Russia, under heavy criticism, has begun to restore gas lines to Europe after cutting off supply to the Ukraine in a dispute over price rises.
The move caused a chain reaction across Europe. Gas supplies to Moldova were cut off completely and Hungary, Austria, Romania, Poland, Serbia, Croatia, Serbia, France and Germany suffered cuts of up to 50%.
Russia supplies western Europe with 25% of its gas - mostly via pipes running through Ukraine.
Tom Reeves, from the Commission for Energy Regulation, said rows over Russian oil supplies would not affect Irish supplies.
He said Ireland produces 15% of the gas used and imports the rest, mostly from Britain. We also get gas from Norway.
Mr Reeves said Ireland also had in place an emergency programme to deal with any shortages.
“More than half the gas we use in Ireland is used to generate electricity. All the power stations that use gas can also use oil. We have been in touch with ESB and other power stations to make sure they have adequate supplies of oil just in case - which they have.”
Although gas supplies are safe, the price of the fuel is determined by the market, he said.
Bord Gáis said it was monitoring the situation.
Russia acted after Germany warned its dispute with Ukraine could hurt its long-term credibility as an energy supplier.
With winter demand already high, gas supplies through Ukrainian pipelines to Europe started to fall off dramatically as a result of the Russian blockade, prompting fears about insecurity in the energy sector.
Russia, which has sought to promote itself as a reliable energy source, cut its neighbour’s gas supplies on Sunday after Ukraine rejected Moscow’s demand for a fourfold price rise.
As criticism mounted, the state-controlled Gazprom said it would restore full gas supplies through the pipeline to Europe by this evening, and that it had piped across an extra 95 million cubic metres of gas.
But it made clear it held Ukraine responsible for the problem.
In a statement the company said: “With the aim of preventing a possible energy crisis caused by Ukraine illegally taking gas, Gazprom has taken the decision to deliver additional gas into the gas transport system of Ukraine.
“We stress that the additional delivery of gas is not designed for Ukrainian consumers but is meant for transit through the territory of Ukraine for delivery to consumers outside the borders of Ukraine.”
Ukraine, which denies stealing any gas, accused Russia of blackmail, saying Moscow wanted to destabilise its economy.
Russia said it had no choice but to turn off the taps after Ukraine refused to sign a new contract that would have ended the preferential price treatment of the Soviet era.
Tiny Moldova, another ex-Soviet state that like Ukraine has shifted its attentions to the West from Moscow, said Russia had all but cut off its gas supplies, also because it refused to accept higher prices.
German Economy Minister Michael Glos, whose country is Russia’s biggest gas customer, said Moscow must show it could be trusted as a supplier.
“Thirty percent of our gas comes from Russia at the moment. That should be increased,” he told German radio.
“But it can only be increased if we know that deliveries from the east are dependable.”
The US also stepped in.
Spokesman for the State Department, Sean McCormack said on Sunday: “Such an abrupt step creates insecurity in the energy sector in the region and raises serious questions about the use of energy to exert political pressure.”
Ordinary European consumers are unlikely to be affected in the short term, but any cut-off to industrial users could cause significant economic damage.
German, Italian, French and Austrian energy ministers have urged Moscow and Kiev to keep gas flows steady and an EU meeting is due on Wednesday.
The Kremlin says the dispute is a commercial matter. Kiev says it as an attempt to undermine its West-leaning government ahead of a hotly contested parliamentary election in March.
There was no indication last night that talks were going on, or when they might resume.
Gazprom said Ukraine had “stolen” gas destined for Europe worth more than $25 million (€21.15m). Ukraine denied this but said it would take gas if temperatures fell below freezing.
The Western-leaning Viktor Yushchenko is trying to take his state into the EU and NATO to the irritation of Moscow, which resents any loss of influence over the former Soviet Union.
Ukrainian officials say that is why the Kremlin is punishing them with a huge price increase while giving Moscow-friendly ex-Soviet states such as Belarus a much easier ride.
Mr Yushchenko says Ukraine can pay more for its gas but will not agree to a big jump all at once. Moscow wants to raise the price to $230 (€194) per 1,000 cubic meters from the current $50 (€42.28).
Retired Ukranian military officer, Albert Dyachenko said: “It is an unprecedented provocation, it is an attempt to break Ukraine on all issues - economic, political, social.”
