This document discusses Macedonia's natural gas sector. It notes that Macedonia currently imports natural gas from Russia via Ukraine and Bulgaria. Gas demand is projected to increase due to the need for cheaper electricity production and heating. The document outlines the economic, environmental, and energy security benefits of increased natural gas usage in Macedonia. It also examines Gazprom's role as a supplier and investor in gas infrastructure projects like the South Stream pipeline.

1. Martin Petrushevski

2. Image Source: http://en.wikipedia.org/wiki/File:Major_russian_gas_pipelines_to_europe.png
Sources: Nichol et al. 2006, Eurostat 2010, Gazprom 2013,

3. Wintershall ENI
15% 20%
Gazprom
EDF 50%
15%
Image Source: http://www.gazprom.com/f/posts/85/290063/cdm40995_edit.jpg
Source: Gazprom 2012
Total cost 15.5bil EUR

4. 2,500km
long
Image Source: http://www.gazprom.com/f/posts/44/270918/southern-corridor-2-en.jpg

5.  383$ per 1,000m³ 2011
 305$ per 1,000m³ 2010
 Due to competition with Norway’s Statoil
 Minimum price with zero margin
160$ per 1,000m³ - room to reduce price
Source: Gazprom 2011

6.  Coal 70% of energy production
 Expensive electricity
 Natural gas is abundant
 Natural gas power plants are a cost-
competitive alternative
 Natural gas in power generation offers
significant emission reductions
 Important role in decarbonizing energy mix
 Advantages beyond power generation
 Supports European Economic development
and competitiveness
Source: European Gas Advocacy forum

7. gas
imported hydro
2.4% geothermal
electricity 5.1% 0.4%
5.6%
biomass
6%
coal
47%
oil
35%
Home Production: 51,53%
Imported: 48,47%
Source: MANU 2008
Year

8.  Imported from Russia from Corridor 8
(Ukraine, Moldova, Romania,Bulgaria)
 Total imported and distributed gas for 2011
approx. 136mil/m³ 16,9% of capacity
Kriva Palanka
Kratovo
Kumanovo
Skopje
“Dark age”
Source: Annual report on the work of the regulatory commission
for energy sector in Macedonia in 2011

9. Source: MGA 2008

10.  Toplifikacija47mil/m³
 Makstil AD 27mil/m³
 TE-TO 21mil/m³
 ELEM 9mil/m³ Doesn’t cover
 Mital Stil 8mil/m³ households
 Pivara 3mil/m³
 Zito Luks 3mil/m³
1company transport, trade & distribution
GA-MA AD Skopje

11. Quantity x10³ m³
140000
120000
100000
80000
60000
40000
20000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Data Source: Indexmundi

12. Primary energy sources in Macedonia by 2020
renewables
12%
gas
16%
oil and coal
72%
Source: Energy Strategy 2009

13. Total pipeline length 790,663m
Total Investments
311,595,854 EUR
Source: Jovanovski 2008

14. Source: Energy Strategy 2009

15.  Micro-economic
 Macro-economic
 Sustainableaspect
 Environmental aspect

16.  Opportunity to choose energy as input for the
consumers
 Increase of the competitiveness *
 Faster dynamic of development of the
technological developmental zones and
increased employment
* the World Economic Forum ranked the economies according to their
competitiveness. It has introduced a specific column for the
infrastructure as an efficient driver of the competitiveness
Source: WBIF 2011

17.  Potential reduction of the current account
deficit due to the reduced import of
electricity
 Improve living conditions of citizens
Source: MINA 2012

18.  Constant supply with possible low prices

19.  Reduction in pollution
- Due to 80% of electricity generated from
fossil fuels
 Noproblems with storage and negative
impact on the environment

20.  Increased use of natural gas throughout
the country, accompanied by
economic, social, and environmental
benefits
 Further development of the power sector
 Strengthening energy security

21. Source: Indexmundi Image Source:
http://www.indexmundi.com/map/?t=0&v=137&r=eu&l=en

22. 1.5% annual growth
in world
Factors:
• Slow economic
growth
•Renewable energy
•Energy policies

24. Benefits Cons
 Energy stability • Increase energy
 Producing cheap dependence on
electricity Russia
 Used for heating
•Reduce share of
 Increasing
competition and renewable in
innovation in the energy sector
industry sector
 Decrease GHG
emissions

25. 25th June 2012
Macedonia Gazprom

26.  Analytica, 2008. Natural gas – an energy necessity for Macedonia. URL:
http://analyticamk.org/files/ReportNo15.pdf
 BP 2012. Statistical Review of World Energy – June 2012. Internet Source. Date accessed: 28.03.2012. URL:
http://www.bp.com/sectionbodycopy.do?categoryId=7500&contentId=7068481
 Energy Sector in Macedonia, 2011. Annual report on the work of the regulatory commission for energy sector in
Macedonia in 2011. Skopje: Government Publishing
 European Gas Advocacy Forum, 2011. The Future Role of Natural Gas. A position paper by the European Gas
Advocacy Forum. URL: http://www.gazpromexport.ru/content/file/egaf/Making_the_green_journey_work_-
_web_version.pdf
 Gas Infrastructure Europe, 2011. System Development Map. URL:
http://www.gie.eu.com/download/maps/ENTSOG_SYSDEV_MAP2011.pdf
 Gazprom 2011. Annual Report. Internet source. Date accessed: 28.03.2013. URL:
http://www.gazprom.com/f/posts/60/660385/annual-report-2011-eng.pdf
 Image “Consumption Projections MK”; “Final Consumption”; “Future Projections Total Gas Demand”; “Gas Demand
2040”; “Gas Consumption in EU”. Jovanovski and Kontradenko 2008
 Image “Future Projections EU”. IEA, 2009.
 Image “Macedonia and Gazprom”. URL: http://www.naturalgaseurope.com/macedonia-south-stream-pipeline
 Image “Investments”. URL: http://www.gazprom.com/f/posts/85/290063/cdm40995_edit.jpg
 IMF, 2011. Electricity Demand and Supply Image. URL: http://www.imf.org/external/pubs/ft/wp/2011/wp1130.pdf
 Indexmundi. Historical Data Graphs per Year. URL: http://www.indexmundi.com/g/g.aspx?c=mk&v=137
 International Gas Union, 2008. Macedonia Natural Gas Situation Oct 2008. URL:
http://www.igu.org/knowledge/members-information-about-natural-gas-markets/macedonia-natural-gas-situation-
oct-2008.pdf/at_download/file
 Jovanovski. Lj. and Kontradenko, Z. 2008. Gas Infrastructure in Republic of Macedonia. A presentation prepared
for the 5th Gas Forum. Brdo Kranj – Slovenia.
 Macedoniaonline. Macedonia Officially joins South Stream Gas pipeline. Internet article. Date Accessed:
24.03.2013. URL: http://macedoniaonline.eu/index2.php?option=com_content&do_pdf=1&id=21361
 Map “Present Gas supply in Macedonia”. URL: http://www.realfuture.org/wordpress/wp-
content/uploads/2009/08/balkan_area_southeast_europe_pipelines_map.jpg
 Macedonian Academy for Sciences and Art (MANU) 2009. Strategy for Energy Sector Development for the period
2008-2020, with a vision for 2030. Skopje: Governmental Publishing.
 Map “South East Pipeline Route”. URL: http://www.gazprom.com/f/posts/44/270918/southern-corridor-2-en.jpg