Where am I?
Home > Chronicles > Economy > World
Saturday, November 21 2009 23:32h
SOFIA
Gas Crisis Hits Balkans, Two Bulgarian Firms Shut
`We are facing a serious gas crisis, in which Bulgaria is a victim of the conflict between Russia and Ukraine`, Bulgaria`s PM said.
Gas Crisis Hits Balkans, Two Bulgarian Firms Shut
The Newest Articles
An employee turns a valve at Mashivske gas field 400 km east of Kiev

Author
Author
Reuters
File photo
TEXT
Published: January 06, 2009 13:30h
All supplies of Russian gas via Ukraine to Bulgaria, Turkey, Greece and Macedonia were halted on Tuesday, officials in Sofia said, prompting emergency measures and the closure of two Bulgarian fertiliser producers.

Turkish Energy Minister Hilmi Guler confirmed that supplies to his country from a western pipeline passing through Ukraine had been completely cut as a result of the Moscow-Kiev gas row.

Also affected was Romania, where Russian gas supplies were reduced by 75 percent from contracted levels, the state-controlled Transgaz pipeline operator said.

"We are facing a serious gas crisis, in which Bulgaria is a victim of the conflict between Russia and Ukraine," Bulgaria's Prime Minister Sergei Stanishev said after an emergency meeting of government officials to discuss the situation.

He said no one had warned Bulgaria, which relies almost entirely on Russian gas for its needs, about the possible suspension in flows.

State gas monopoly Bulgargaz told industrial users it was suspending or cutting gas supplies to a minimum and urged them to switch to alternative fuels such as oil. Fertiliser producers Neochim and Agropolychim said they were forced to halt production.

Russia on Monday ordered a reduction in gas flows to Europe via Ukraine, a measure it said was to stop its neighbour from stealing fuel. Ukraine said the move would jeopardise supplies to Europe, which is facing freezing temperatures.

The gas row has raised new questions about Russia's reliability as an energy supplier and rekindled Western suspicions -- still fresh after Russia's war with Georgia last year -- that the Kremlin bullies its pro-Western neighbours.

"Russia and Ukraine must find an urgent solution because the energy systems of dozens of countries are at risk," Bulgarian Economy and Energy Minister Petar Dimitrov told national radio.

Sofia said the gas flow to Bulgaria and the transit to Turkey, Greece and Macedonia had been suspended as of 0130 GMT.

Turkey's Guler said his country had raised supplies of Russian gas delivered via a pipeline which passes under the Black Sea to 48 million cubic metres per day from 40 million.

EMERGENCY MEASURES

Bulgaria, where temperatures dropped below minus 15 degrees Celsius (5 Fahrenheit) overnight, will be worst hit because like Macedonia it has no access to alternative pipeline routes.

The government called on households to start using other means for central heating. It said heating utilities would start using oil and assured people they would not be left in the cold.

Stanishev said schools, kindergartens and hospitals would be a priority for Bulgargaz.

Gas accounts for less than 10 percent of Bulgaria's energy needs but is a crucial source in winter as heating utilities in the cities and bigger towns run on gas.

The country started pumping a maximum 4.3 million cubic metres of gas from its sole gas storage facility, which has total reserves of 570 million, officials said.

Neighbouring Romania decided to cut supplies to gas-fired power producers and switch to fuel oil and coal.

"We are enforcing measures to make sure none of the household consumers and industrial ones suffers from this situation between Russia and Ukraine," Prime Minister Emil Boc said after an emergency meeting with economy ministry officials.

Romania, which receives about a third of its gas from Russia, said it will use more gas from underground storage. It covers 65 percent of its needs with domestic production.

There was no immediate reaction from Greece, which can access additional supplies from Turkey.

Related Articles
ADS
ROLLS-ROYCE

Rolls-Royce says car market picking up in Asia

The Britain-based carmaker had a bumper year in 2008 when it sold a record 2,012 cars...
WALL STREET

Wall Street down on technology jitters

The Dow Jones Industrial Average dipped 10.95 points (0.11 percent) in opening trades...
GOLD PRICE

Gold rockets to record high above 1,150 dollars

Traders said the dollar's overall weak tone was due to the prospect of US interest rates...
TAKEOVER

Volkswagen board approves Porsche takeover

The company said it wanted to "modernise and expand its product line" and to enter "new...
GOLD PRICES

Gold demand climbs quarter-on-quarter

In dollar terms, the value of global gold consumption advanced almost 13 percent to 24.7...
CHOCOLATE MAKERS

Hershey and Ferrero will buy Cadbury?

The news could remould the chocolate-making sector with a takeover costing more than 10.0...
APEC

Obama joins APEC leaders for dress-up dinner

The leaders were to be treated to a spread of Singapore cuisine -- made less spicy and...

ADS
------------------
Copyright © 2006-2009 Javno.com   All rights reserved.