I participated in a discussion in London yesterday (9 December) on “Is
Ukraine ready to face the winter freeze: focus on diversification of energy
supplies and embracing energy efficiency”. I made my comments in the form of
questions and answers, as follows:
Q. Can Ukraine reduce gas demand further
in 2015-20?
A. In the
mid 2000s, Ukraine’s gas consumption was 75 bcm/year. It was 50 bcm in 2013 and
will be about 42 bcm in 2014. That’s a 40%+ reduction, due to:
■ economic recession (which has reduced industrial
demand, and naturally it is hoped that much of this will be restored);
■ high prices which have encouraged diversification to
coal;
■ and some energy saving measures, also due to high
prices.
Gas demand has already been
reduced where it is easy to do so. But, assuming (i) a modest economic
recovery, (ii) continued diversification to coal (and other fuels), and (iii)
continued energy saving measures, it
