Transcript Energy Security of Lithuania and Impact of Nord Stream Project

Energy Security of Lithuania
and Impact of Nord Stream
Project
dr.Tomas Janeliūnas
The Institute of International Relations
and Political Science
Priorities of Lithuania’s Energy
Security

Ensuring reliable energy supply and functionality of
energy infrastructure;

Diversification of energy supply sources;

Reduction of dependence on energy resource
import (by reducing energy intensity and switching
to alternative or renewable energy recourses).
Energy Dependence from Russia lessons learned
 Energy blockade from Russia/Soviet Union in
1990
 Disruption of gas supply in 2004
 Stopped supplying of oil by Druzba pipeline
since July 2006
Oil supply and refining in
Lithuania
Importance of Butinge oil terminal
 Butinge terminal was considered to be the main
instrument for prevention of energy blockade
 The terminal became an important element of oil
export system and provided an opportunity for
Lithuania to become an oil transit country
 Currently Lithuania has physical capability to
import oil by see and in this way Mazeikiu oil
refinery can still function profitably
Oil loading in Butinge terminal 2001-2005
2001 2002 2003 2004 2005 2006
Oil loaded 5.1
(mln.t.)
6.1
10.7 7.2
6.1
5.9
Oil sector – the main conclusion
The development of oil sector in Lithuania has
proved one simple principle – mediation in
energy sector (that is - participation in transit
and process of refining) strengthens energy
security and economically is more useful than
being just a consumer
Dependence in gas sector
 Gazprom is the only gas supplier to Lithuania.
 Natural gas is transported to Lithuania via the only Minsk-VilniusKaliningrad, pipeline, which is controlled by “Gazprom”.
 Gazprom is one of the biggest stockholders of the main Lithuanian
gas operator “Lietuvos dujos”. (Gazprom” has 37%, his main partner
in Western Europe “E.ON Ruhrgas International AG” share 39%,
and 18% is left for Lithuanian government).
 There are no gas storage facilities in Lithuania.
 Lithuania does not have capabilities to deliver, recast or store big
quantity of liquid natural gas (LNG).
Lithuania’s reaction to the Nord
Stream project
 Dissolved hopes about possibility to become a gas transit
country
 Fears about increasing pressure of Gazprom on gas price
 Evoked clash between the CEE and Western European
countries.
Possible gas pipelines from
Russia to Europe
NEGP
Yamal 2
Amber
Yamal 1
Impact of the Nord Stream project
for Lithuania’s energy security
 The Nord Stream, compared to more favourable “Amber”
pipeline, will increase Lithuania’s energy insecurity.
 Lithuania will remain just a gas consumer, state budget
will not get extra money from gas transit.
Impact of the Nord Stream project
for Lithuania’s energy security (2)
 The Nord Stream project (among other recent Russia’s
moves) contributed to become energy security one of the
main topics in the global and EU agenda.
 Baltic and Central European countries have got a
chance to strengthen regional cooperation in the energy
sector; The Nord Stream project gives to Baltic states
and Poland a new impulse for solving the energy
security problems by common efforts
Future of Lithuania’s Energy
Security
 The main structural changes in Lithuania’s energy
security sector could take place only if EU consolidates
its Common Energy Policy.
 More intense consolidation of interest may take place
rather in Baltic and CEE countries. Two-way movement
of energy security policy may emerge in EU
 Lithuania need to take a very proactive position in its EU
policy to ensure the security interest in energy sector.