Belarus to reduce share of dominant energy supplier to 70% in 2015

Belarus will be working to diversify supplies of oil, natural gas, electricity and coal, and reduce the share of the dominant energy supplier in the gross energy consumption to 70-71% by 2015. This target is spelled out in the government’s plan of action for 2011-2015.

According to the document, Belarus’ domestic demand in primary energy resources will be satisfied to ensure the GDP economic growth at a level of 62-67% within the next five years and to reduce the GDP energy intensity by 29-32% by 2015 as against 2010 and increase the share of local fuels to 30% of gross consumption of energy resources.

To this end, the country will pursue the policy of energy conservation and energy efficiency, involvement of local fuels, waste energy, and renewable energy in the energy balance.

The government will be working on promoting integrated use of hydrocarbons, and increasing the crude oil upgrading index to 92% by 2015. Strategic reserves of natural gas and oil will be increased; the capacity for storage of boiler and furnace fuel (gas and mazut) will be ramped up to 78.9 days by 2015.

A further increase in the reliability and efficiency of the power system will be achieved through balanced modernization and development of energy-generating facilities and electricity networks, use of advanced technologies and decommissioning of old and less cost-effective equipment, reducing the share of accumulated depreciation of the main assets of the fuel and energy industry to 48.3% by 2015. 

The economic efficiency of the fuel and energy industry is expected to increase after the introduction of the strict budgeting system and tariff regulation aimed at reducing expenses.

Directive No 3 “Economy and thrift are the main factors of the economic security of the state”, the Concept of the Energy Security of Belarus, the Law on Renewable Energy and other documents stipulate main mechanisms to fulfill these tasks.

Among these mechanisms are the diversification of oil and gas supply to Belarus with optimal logistics, the construction of gas and oil terminals and pipelines in adjacent countries, the increase in the production of oil abroad (Venezuela, Iran). Moreover, Naftan is supposed to install a deterred coking unit and related equipment to produce hydrogen and sulphur, Mozyr Oil Refinery will build a unit for hydrocracking black oil fuel. Plants will be equipped with metal heat processing units with higher capacity. Power stations will be revamped using efficient technologies to substitute obsolete equipment with the efficiency under 39%.

According to