Could Ireland be hit by Russia's gas supply cuts?

Russia today reduced it's gas flow to Europe via the Ukraine to a quarter of normal levels. Russian energy firm Gazprom said the cut was designed to compensate for the gas it claims Ukraine is illegally siphoning off. Ukraine denies the allegations.

So far, eastern European nations - principally Bulgaria, Greece, Turkey and Macedonia - have been hit hardest by the cuts as temperatures in the region drop to as low as -15 degrees.

According to RTE, Bord Gais has denied Ireland will be affected. The Irish semi-state company said that Ireland's gas is sourced from the Kinsale gas field, and British and Noregian fields in the North Sea.

However, writing in Construct Ireland last year, Richard Douthwaite noted that the gas fields off Cork are practically exhausted, with almost all of our gas now coming from Britain.  Britain's own North Sea reserves are quickly depleting though, and the country is becoming increasingly reliant on pipelines bringing gas from the Norweigan North Sea, Belgium and the Netherlands.

However, the main source of gas for both the Belgian and Dutch pipelines which supply Britain - and thus Ireland - is Russia. While it's not clear how much of Ireland's gas supply orginates in Russia, it's likely that Ireland will increasingly rely on Russian gas as fields off Cork and in the North Sea decline, though the coming on-stream of the Corrib gas field is expected to ease our supply problems somewhat.

 Until Ireland has heavily reduced it's reliance on imported gas, we should not expect to be immune to future Russian cuts. While France holds 122 days of gas in storage and Germany 99, Britain holds 13 days worth of gas and Ireland just two. 

Last modified on Wednesday, 07 January 2009 11:46
Comments   
heinbloed
#4 heinbloed 2009-01-07 20:58
Link to the Zebrugge LNG terminal's capacity source of information (whole of western Europe plus Belgium - according to the harbourmaster):
http://www.standaard.be/Artikel/Detail.aspx?artikelid=DMF06012009_013
heinbloed
#3 heinbloed 2009-01-07 17:02
Europe's carbon industry is -in Ireland-represe nted by Conoco Philips,they own the Irish Refinery in Whitegate.
This refinery is a money destroyer, it costs more to run then it delivers. But it is a pawn, "We help you to stay independant etc..."
Conoco Philips owns Europes largest LNG terminal in Zeebrugge.See http://www.fluxyslng.net/media/pdf/2008/PB_Fluxys_080731_EN.pdf
This makes no money when no shipping is done.
According to yesterday's press release this LNG terminal has enough capacity to cover the gas demand of the entire of western Europe.For a price.
Conoco Philips is on board with Gazprom to exploit the world, here is another sample how they share the gas market: http://royaldutchshellplc.com/2008/11/18/gazprom-exxon-conoco-could-join-yamal-lng/
Shell has repeatedly warned against this company and their monopoly.
When oil became short due to the war-who made mega profits?And when gas becomes short-you guess...
The new LPG line build to the USA has to be financed, but the profitability of this financing has to be proofen to the investors beforehand.By making Zebrugge profitable for example.
Russia needs financial help from the World Bank according to the WB Chef,propably early this summer, they can't sell their oil for profit anymore.Russias oil production has started to shrink last year, this year it'll fall tremendously.
So how to pay the World Bank? Sell gas to the USA, expensive. But to get the necessary infrastructure to do so one needs investors. Who have the know-how about to exploit the ignorance of the Western World: Conoco Philips.
Gazprom Conoco Philips, the ideal duo.Oligarchs,k leptokrates.

Michael Spratt
#2 Michael Spratt 2009-01-06 21:27
Europe is in a dangerous predicament where Russia is making bilateral energy deals with individual countries. So Russia gains huge political influence from being the dominant energy supplier. Yet Europe gains very little influence from being the largest payer of foreign exchange into Russia.
Michael Spratt
#1 Michael Spratt 2009-01-06 19:26
Europe is in a dangerous predicament where Russia is making bilateral energy deals with individual countries. So Russia gains huge political influence from being the dominant energy supplier. Yet Europe gains very little influence from being the largest payer of foreign exchange into Russia.

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