Diversification against Capitalism Konstantin Simonov Sofia - PowerPoint PPT Presentation

National Energy Security Fund Diversification against Capitalism Konstantin Simonov Sofia October 15 2015

Is it thrush? National Energy Security Fund

The results of four years investigation of the European Commission • It is not Gazprom that is to blame for the fact that some countries on account of their geography, history, and economic and political decisions have an alternative to Russian gas and others have not. Gazprom did not and could not prevent anyone from building their own interconnectors, underground storage facilities, LNG terminals, and other infrastructure • The charges concerning preventing cross-border flows of gas sound even more ridiculous. How it is possible in Bulgaria? If you have no alternative supplier – it is not guilt of Gazprom National Energy Security Fund

How is responsible for prices? Gas Prices for Households excl. of Tax in European Countries (H2 2014, €/’000 Cubic Metres) 900 800 700 600 500 400 300 200 100 0 Belgium United Kingdom Greece Liechtenstein Spain Romania Hungary Denmark Croatia Turkey Latvia Estonia Bulgaria Poland Serbia Lithuania Slovakia Luxembourg Czech Republic Slovenia Netherlands Germany Austria Ireland Sweden Italy France Portugal Gazprom price* * - Gazprom’s Average Price of Gas Deliveries to EU+Turkey without Baltic in 2014 Source: Eurostat, NESF calculations National Energy Security Fund

How is responsible for prices? Gas Prices for Households incl. of Tax in European Countries (H2 2014, €/’000 Cubic Metres) 1400 1200 1000 800 600 400 200 0 Romania Hungary Turkey Serbia Bulgaria Croatia Latvia Estonia Lithuania Poland Luxembourg Slovakia Czech Republic Slovenia United Kingdom Belgium Germany Austria Ireland France Greece Netherlands Liechtenstein Denmark Italy Spain Portugal Sweden Gazprom price* * - Gazprom’s Average Price of Gas Deliveries to EU+Turkey without Baltic in 2014 Source: Eurostat, NESF calculations National Energy Security Fund

Transit Prize Planned distribution of South Stream gas, bcm per year 2,5 Turkey 14 Bulgaria Greece 2,5 Hungary 3 32 Serbia Baumgarten* 7 Others 2 * Italy and Austria Source: Gazprom, NESF calculations National Energy Security Fund

Money is nothing? 40 million Euros now and 600 million Euros in future ANNAULLY National Energy Security Fund

You do not want to earn money? National Energy Security Fund

Okay, Germany will do it! National Energy Security Fund

Policy of neighbors Turkey gas import in 2010-2014, bcm 60 50 40 LNG Iran 30 Azerbaijan Russia 20 10 0 2010 2011 2012 2013 2014 National Energy Security Fund

Still no alternative • Supply of Russian gas to Europe (net of direct sales to the Baltic states and Finland as well as supply to Turkey) in August 2015 increased by 28% compared with the same month of last year. The supply of Russian gas to Europe during 9 months of 2015 was 92 bcm compared with 90 bcm last year. • In most European countries there is a very significant lag in terms of pumping gas into under ground storage facilities (USF). For example, in Germany at the end of August reserves were 4.7 billion cubic metres or 24% lower than last year. They are just 67% full versus 90% on 1 September 2014. In countries in Southeast Europe (Austria, the Czech Republic, Slovakia, and Hungary), reserves are 3.3 billion cubic metres (25%) lower than last year National Energy Security Fund

Thank you! simonov@energystate.ru National Energy Security Fund