Belarus must use 'gas pause' to solve task of energy conservation - Semashko
MINSK. May 16. (Interfax) - Belarus will be faced with inevitable growth in the price of imported natural gas within several years, so the country should use the rest of the gas until then to solve the task of energy efficiency, Belarusian First Deputy Prime Minister Vladimir Semashko said at a plenary session of the Belarusian Industrial Forum in Minsk on Wednesday.
"Today the price of imported gas is $165.6 per 1,000 cubic meters, and even at that price it's cost-effective to engage local fuels. But the 'gas pause' will not be long. Russia will move towards net-back prices, and once this is the case, prices will also rise for Belarus. We must use the 'gas pause' to raise energy efficiency in Belarus," Semashko said.
Russia has been forced to develop new natural gas fields in Yamal, as well as on the Arctic shelf. This last project requires purchases of imported technology, he said.
Investments of $150-180 billion spread over five to six years will be required to develop gas fields in Yamal. Meanwhile, Gazprom can only allow itself $90-$10 billion of investments per year at the present, he said.
Gazprom is running a loss on domestic Russian gas prices today, although these losses are covered by the high profitability of export sales. At the same time, the fields that Gazprom operates have already been more than 80% developed. "This is why Russia has nowhere to go - investments in the gas sector are needed, and prices will inevitably grow," Semashko said.
In 2009, GDP energy intensity was 290 kJ in oil equivalent for $1,000 of GDP. In 2015, this figure must be brought to 200-210 kJ, he said.