IEA: EU copes with Russian oil export delays

Jan. 15, 2007
The International Energy Agency Jan. 9 said European oil markets would cope with the halt of Russian oil exports via the Druzhba (Friendship) pipeline across Belarus, but it nonetheless called for a quick and clear resolution to the problem (OGJ Online, Jan. 8, 2007).

The International Energy Agency Jan. 9 said European oil markets would cope with the halt of Russian oil exports via the Druzhba (Friendship) pipeline across Belarus, but it nonetheless called for a quick and clear resolution to the problem (OGJ Online, Jan. 8, 2007).

“There is apparently no immediate impact to any of the refineries in the countries involved, as they all have working stocks of several days. So there is no threat that product supplies to the end users will be disrupted,” IEA said.

It said if the disruption should prove more prolonged, the refineries could source crude from alternative routes. Some already are organizing alternative supplies through Baltic Sea ports or through other pipelines.

The affected countries on the Northern branch of the Druzhba pipeline are Poland and Germany. Ukraine, the Slovak Republic, Hungary, and the Czech Republic are affected on the southern part of the pipeline.

In an effort to end the problem, a delegation led by Belarusan Vice-Premier Andrei Kobyakov flew to Moscow Jan. 9, but there was no immediate indication that supplies would resume, as Russian President Vladimir Putin ordered his Cabinet to consider a possible reduction in oil output.

Putin ordered ministers to discuss with Russian companies the possibility of reducing oil output in connection to problems linked to oil transit through Belarus. Analysts said Russia has a limited capacity for refining oil and would have to cut crude output if its exports suddenly decreased.

Concerned about the implications of the disruption on energy security, EU Commission Pres. Jose Manuel Barroso and German Chancellor Angela Merkel criticized Russia and Belarus, saying it is unacceptable for energy transit or supplier countries to halt deliveries without consultation.

“That always destroys trust, and no trusting, undisturbed cooperation can be built on that,” Merkel said after talks with Barroso in Berlin.

Merkel said consultations are the minimum when there are such problems, and [consultations] must become normal.

As the EU called for a rapid resumption of oil deliveries, EU Energy Chief Andris Piebalgs said he may convene a meeting of the bloc’s Oil Supply Group to evaluate the situation.