European customers hit by gas cuts

[HenryTo]

Already, the natural gas supply cut to Ukraine are being felt in other Western and Central European countries:
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European customers hit by gas cuts

Monday, January 2, 2006; Posted: 8:42 a.m. EST (13:42 GMT)

(Reuters) -- European countries were enduring reduced gas supplies at the height of winter on Monday after Russia halted its deliveries to Ukraine.

Central European countries rely heavily on Russia for gas.

Western Europe gets 25 percent of its gas from Russia -- 80 percent of it via Ukraine. Most is destined for Germany with some also going to France, Italy and Austria.

Some of Russia's European gas customers are already feeling the impact of reduced supplies.

This is how they are coping.

Germany, which gets more than one third of its natural gas from Russia, said it has enough stored gas to last up to 75 days. The country's largest gas supplier E.ON Ruhrgas said its big customers may be hit if the delivery cut turned out to be long and the winter remained cold. Chief Executive Burckhard Bergmann said he saw no problems for smaller customers, including households and small businesses.

Italy's Eni, which gets about 30 percent of its gas from Russia, said supplies from Russia were down 24 percent from normal levels. Chief Executive Paolo Scaroni said at the weekend gas stocks covered 15 days' consumption, but added Italy exports gas-generated electricity to European neighbors and might run down gas stocks faster than forecast.

French utility Gaz de France said it is following the situation very closely and looking at precautionary measures it could take to secure supplies.

Poland said Russia's cut in gas deliveries to Ukraine has reduced Poland's supplies by 14 percent, but officials assured consumers the shortfall would be covered with domestic reserves. Economy Minister Piotr Wozniak said on Sunday talks were underway that may enable Poland to compensate by increasing the amount of gas flowing in from Belarus.

Hungary's natural gas imports from Russia via Ukraine have dropped by more than 40 percent, according to oil and gas group MOL. The firm said it would cut gas transit to Serbia and Bosnia by a similar amount.

Austrian oil and gas group OMV said its Russian gas supplies were down by around a third. OMV said it could cushion the cuts by tapping reserves and increasing domestic output. It could not rule out limited reductions in supply to its biggest customers if deliveries fell further and temperatures dropped.

Czech supplies from Russia via Ukraine are so far unaffected, importer RWE Transgas said. The Czechs receive around two-thirds of their gas from Russia, the rest from Norway.

Supplies of Russian natural gas to Slovakia via Ukraine dropped by 30 percent on Monday, Slovak officials said.

Croatia's natural gas imports from Russia have fallen more than 30 percent and the economy ministry said there was enough gas for everyone only for the next two weeks.

Daily supplies of Russian natural gas to Romania have dropped by 5 million cubic meters or 30 percent, Romanian officials said on Monday.

Natural gas flow to Turkey from Russia, the country's top gas supplier, has not been affected.

Greece's state-controlled gas importer DEPA said the flow of gas was normal.

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