Concern over Russian gas supplies

Paris — Russia’s energy sector should take measures to improve the security of supply and reduce its impact on the environment, according to the International Energy Agency. The Paris-based policy body is particularly concerned about the ability of Russian energy major Gazprom to increase gas production as the country’s key producing fields decline.

As the world’s largest gas producer and exporter, Russia’s “role in the emerging global gas market will only gain in importance, as growth is projected both in Russian domestic demand and in international requirements,” said Claude Mandil, IEA executive director.

Mandil cited a new IEA publication, titled Optimising Russian Natural Gas: Reform and Climate Policy, which examines the potential to reduce greenhouse gas emissions in the Russian natural gas sector and to limit natural gas flaring by oil companies.

Around 150 bcm of gas is currently wasted through flaring each year, including a significant volume in Russia, according to the IEA report. Russia, it adds, could save at least 30 billion cubic meters – a fifth of its exports to European OECD countries –by introducing more advanced technologies and improving energy efficiency.

This investment would enable Russia to save an impressive amount of gas that could be used for export and generate reductions equivalent to 150 million tonnes of CO2 equivalent that could be sold on the emerging carbon markets, said Mandil.

“We hope that this study will focus attention on these key energy policy needs, and foster a dialogue among Russian stakeholders, including government, domestic and international investors, Gazprom and gas consumers worldwide”, the IEA leader concluded.

Founded during the oil crisis of 1973-74, the IEA acts as energy policy advisor for its 26 member countries with the aim of ensuring reliable, affordable and clean energy for their citizens. IEA member countries include the UK and the US, but not Russia or China.