Russian gas users are in for a surprise.
Householders and industrial customers will have meters installed for the first time. They will be compared with cost-conscious western consumers, having never tried saving energy.
More than 11 tcf of natural gas and 2.7 million metric tons of LPG/year are burned in Russia. Gas is cheap-much cheaper than anywhere in Europe.
Russian householders all pay the same, based on average consumption. Manufacturers use gas fired equipment with a typical efficiency of 25-30%. For similar processes, western manufacturers would expect 60-80% efficiency.
The Russian system encourages wastefulness. But Boris Vassilienko, general director of state gas distributor Rosstrojgazifikacija, Moscow, started his own revolution Oct. 7 when he signed a deal to import western efficiency.
GERMAN KNOW-HOW
Rosstrojgazifikacija agreed with Ruhrgas AG, Essen, on long term technical and commercial cooperation for gas distribution. Ruhrgas will provide the know-how, while Rosstrojgazifikacija will implement changes.
The task is massive. Rosstrojgazifikacija supplies fuel to 37 million homes throughout Russia, except for Moscow and St. Petersburg. Besides the 20 million homes using natural gas, 17 million use LPG.
Potential cutbacks in gas usage inspired Vassilienko to call his campaign "Drilling in Moscow." His target of 10-20% savings equates to discovery of a 1-2 tcf gas field, a valuable freeing of energy to meet rising domestic demand.
Although residential gas meters are a first step, the venture will work toward modernizing pipeline networks as required. Experience from pilot schemes will determine models for upgrading other towns.
GUINEA PIGS
Four "guinea pig" towns have been chosen: Nishi Novgorod, 500 km northeast of Moscow on the River Volga; Samara, farther south down the Volga; Stavropol, in southern Russia near the Ukrainian border; and Krasnodar, in southern Russia near the border with Georgia.
Ruhrgas says a key part of the scheme is that it will make recommendations but not sell equipment. The Russians plan to manufacture the metering and pipeline systems themselves, then install and operate them.
Which brings up one point nobody is stressing-money.
Ruhrgas is not a charity. It expects to make a profit. Ruhrgas says the Russians would not benefit from being sold equipment, for which they must pay in hard currency. Better to provide know-how and training, then discuss payment on an economic basis.
The logical followup to installing meters is to start charging by usage. No doubt this will mean price rises for the struggling Russian public, but Vassilienko has not confirmed that.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
