(Corrects size of a contract with E.ON to 500 million cubic
metres, from 350 million cubic metres)
* Slovakia gas demand to rise by 24.5 pct by 2016
* SPP sees no disruptions in gas supplies
By Martin Santa
BRATISLAVA, Nov 11 (Reuters) - Slovak gas consumption will
rise in the next six years as generators switch to gas-fired
power plants and the economy slowly shakes off the financial
crisis, Slovakia's dominant gas supplier said on Thursday.
But Slovensky Plynarensky Priemysel (SPP) chairman Achim
Saul cautioned the increase will be less than expected due to
the lingering effects of the global downturn that has crimped
gas demand across Europe.
"We expect a slow rise in gas consumption, from around 5.3
billion cubic metres to 6.6 billion cubic metres by 2016," Saul
told Reuters.
"Slovakia's gas consumption will rise not just because of
economic recovery, but also due to the launch of new energy
sources powered by natural gas combustion."
Gas consumption in the European Union is expected to rise
over the coming years as utilities turn to gas-fired power
plants instead of coal due to the cost of emitting the
greenhouse gas carbon dioxide.
This is especially true in former Eastern-block countries
like Slovakia which for generations relied on highly polluting
coal to generate electricity.
A factor for future gas consumption is how much countries
look to renewables, added Saul, whose company is run by GDF Suez
<GSZ.PA> and E.ON Ruhrgas <EONGn.DE> and operates a pipeline
carrying about 70 percent of Europe's consumption of Russian
natural gas.
"This will, certainly, have an impact on supply and prices
of gas," he said.
The central European country of 5.4 million people is also
well prepared for possible disruptions in gas supplies from
Russia, its dominant delivery partner.
Since the 2009 dispute between Ukraine and Russia that shut
off gas to much of the region in freezing temperatures, Slovakia
and its gas companies have taken steps to ensure supplies.
SPP signed a gas contract with GDF Suez last year to receive
up to 500 million cubic metres of gas annually and a similar
deal with E.ON Ruhrgas for delivery of up to 500 million cubic
metres of gas [].
"In case of an emergency situation, SPP is able to cover
more than 20 percent of gas consumption from other than Russian
sources," Saul said.
Slovaks can also tap a reverse-flow from the neighbouring
Czech Republic and Austria, with capacity exceeding its maximum
consumption in the winter period.
SPP's unit Eustream and Hungarian transmission system
operator FGSZ re-launched in October bidding for companies on a
new gas link between the two countries [].
"Open season runs until Dec. 8. If the result turns
positive, we expect launch of the gas inter-connector in the
beginning of 2014," Saul said.
(Additional reporting by Kwok W. Wan in London, Editing by
Michael Kahn and Janet Lawrence)
