UPI Energy Watch

NEW YORK, Dec. 29 (UPI) -- Gazprom warns Belarus not to tap Yamal

Russian gas giant Gazprom suspects thieves will attempt to tap the Yamal-Europe pipeline crossing Belarus, but it will be able to identify any unauthorized tapping should it ever happen.

"The Yamal-Europe gas pipeline is a purely export one, it has technological links, but all of them are shut and sealed,"' Gazprom spokesman Sergei Kupriyanov said on Russia's Vesti news channel Thursday.

"Unauthorized changes to its mode of operation will be immediately identified at Gazprom's central control room," Kupriyanov said. Construction on the pipeline, which was financed by Gazprom, began in 1997.

"The bulk amounts of export gas are delivered to consumers through this pipeline. This year they will total 30 billion cubic meters. Beltransgaz networks carry a mere half of that amount," Kupriyanov said.

Russia's relationship with Belarus is different from its relations with Ukraine from a year ago.

According to Kupriyanov, the transit was carried out under transit treaties. In this case, gas is exported through Russia's own transport networks, while Beltransgaz keeps the system going, he said.

He also said the Russian government might impose an export tax on gas bound for Belarus.

"In a situation where we cannot start normal cooperation in the gas industry, it will be quite possible to decide in favor of canceling the current preferential relations in the future," he said.

Gazprom has warned Belarus against siphoning gas from the Yamal if it goes ahead with a threatened Jan. 1 supply cutoff.

Kupriyanov said the Yamal's connections with the rest of the Belarusian system are sealed and that any attempt to disrupt the flow would be detected at the company's headquarters in Moscow.

Kiev ready to up Russian gas transit to Europe

Ukraine said it is ready to increase its transit of Russian natural gas to Europe should Russian state-controlled Gazprom decide to cut off gas supplies to Belarus, Ukraine's Fuel and Energy Minister Yury Boiko told reporters Thursday.

"We are ready to help European consumers in the case of a conflict," he said.

Gazprom, the world's largest gas company, threatened earlier this week to cut off gas supplies to Belarus if the country does not agree to pay higher prices. Belarus has returned a warning by saying the move could jeopardize deliveries of Russian gas across its territory to Gazprom clients in Europe.

Gazprom CEO Alexei Miller said in televised comments this week that the company had sent letters to Germany, Poland and Lithuania warning them of possible interruptions in gas deliveries to their countries.

Less than a quarter of Russian gas supplies pass through Belarus to Europe. In 2005, Belarus transited 40.8 billion cubic meters of Russian gas, while its southern neighbor Ukraine transited 136.4 billion cubic meters of gas.

Gazprom has asked Belarus to pay more than twice the current price for gas next year. Sergei Kupriyanov, chief spokesman for Gazprom, said Tuesday Belarus had not accepted Gazprom's proposal to hike its gas price to $110 per 1,000 cubic meters in 2007 from the current $46.68 per 1,000 cubic meters.

Beijing to focus on oil, gas to support growth

China said it plans to strengthen its oil, gas and coal exploration to support the country's burgeoning economic growth.

Within the last several years, China has improved its exploration work of mineral resources, Vice-Premier Zeng Peiyan said while addressing the 25th session of National People's Congress's 10th Standing Committee.

Chinese energy firms discovered 8 large-scale oil fields with proven reserves of more than 100 million tons in Tahe, the Xinjiang Uygur Autonomous Region, and Penglai in East China's Shandong province.

The firms also discovered 5 gas fields with estimated reserves of more than 100 billion cubic meters in Puguang in the Sichuan province and Sulige in the Inner Mongolia Autonomous Region.

Zeng said China has increased the construction speed of energy bases. Firms have set up oil and gas development bases in Tarim, Xinjiang and Bohai Bay, and coal bases in Shanxi, Inner Mongolia and Shaanxi provinces.

He said the country needs to give key resources such as oil, gas and coal priority in future exploration work.

"By 2010, we hope to form a number of important strategic mineral resources bases in the west and make breakthroughs in exploration work in the east and in the middle part of the country," Zheng said.

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Closing oil prices, Dec. 28, 3 p.m. London

Brent crude oil: $60.01

West Texas Intermediate crude oil: $60.06

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