Equal-income gas prices for partners in Single Economic Space by 2018-2019

Partners in the Single Economic Space — Belarus, Russia, and Kazakhstan — will be able to reach equal-income prices for natural gas by 2018-2019. The statement was made by First Vice Premier of Belarus Vladimir Semashko at the expanded participation session of the board of the Energy Effectiveness Department of the State Standardization Committee of Belarus on 6 February. The session was held to sum up energy-saving efforts exercised in Belarus in 2013, BelTA has learned.

According to Vladimir Semashko, the real sector and the power engineering industry should use the remaining time, during which the Belarusian economy enjoys low gas prices, for the sake of raising their own energy effectiveness. “We are now having a gas pause. We should use it. We are not going to get another one. We now pay about $175 per 1,000m3 of natural gas but it is not going to last. Calculations indicate that Russia will enable equal-income prices for natural gas by 2018-2019,” said the First Vice Premier of Belarus.

Earlier the Single Economic Space member states were supposed to reach equal-income prices for natural gas on 1 January 2015. However, due to the economic crisis Russia was forced to move the deadline, therefore, in line with existing agreements the natural gas price Belarus will have to pay in 2015 will remain at the level of 2013-2014.

First Vice Premier of Belarus Vladimir Semashko underlined that even in conditions of equal-income prices for gas, Belarus will pay less than neighboring European countries, but the difference will not be as great as the present one. “We will not pay the 30% customs duty and the transport charges will cost less for us,” he explained.

Vladimir Semashko remarked that thanks to the systemic measures the government takes for the sake of raising the energy effectiveness of the national economy, Belarus’ GDP energy consumption ratio is close to that of leading Western countries, which are located in the same climatic zone. Besides, the country demonstrated enviable dynamics by reducing the energy consumption ratio by nearly three times within a comparatively short period of time. Thus, the GDP energy consumption ratio dropped from 690kg of oil equivalent in 1990 to 240kg in 2011. At the same time Ukraine managed to reduce the GDP energy consumption ratio by 40% to 430kg, with the figure in Russia down by 34% to 350kg. In 2013 the deterioration rate of the basic assets in the Belarusian power engineering industry dropped to 41% although the figure was over 61% a while ago. In 2014 the deterioration rate is supposed to drop to 38% thanks to the future commissioning of combined-cycle power units of the Lukoml and Bereza state district power plants. The units may be commissioned ahead of schedule, BelTA has learned.

More considerable efforts will be required later on in order to reduce the GDP energy consumption ratio and improve other indicators. However, without accomplishing those goals it would be difficult to secure the competitive ability of the Belarus economy, noted the First Vice Premier. He encouraged the Energy Effectiveness Department to come up with more comprehensive solutions since in previous years efforts tended to skew in favor of small-scale power generation and renewable energy sources. In his words, nobody doubts that the existing small-scale energy generation program will be implemented in Belarus. However, all the modernization projects in large-scale manufacturing, civil engineering, transport, and large-scale energy generation must be scrutinized from the point of view of energy effectiveness.

Vladimir Semashko also called upon the Department executives to more actively use energy audit instruments. If necessary, the possibility of vesting auditors with powers similar to those enjoyed by fire inspectors and other government agencies should be considered. Besides, all the interested sides that participate in energy-saving and energy-effectiveness projects should put more efforts into raising extra budgetary funds for this area since investments in energy saving can be recouped later on as energy resources grow more expensive.