Gas Supply Security in the Baltic States: A Qualitative Assessment EPRG Working Paper 1009 Sachi Findlater and Pierre Noël Abstract In a setting of increasing European concern over gas supply security, this article provides an empirical assessment of the gas supply security situations of three of the most gas dependant nations in Europe: Latvia, Lithuania and Estonia. The analysis challenges existing security indices and places an emphasis on having a detailed understanding of a country’s specific gas supply set up, the structure of its gas consumption and, in particular, policies in place designed to mitigate the effects of a disruption. Keywords Natural Gas, security of supply, Baltic States JEL Classification Q40, Q48 Contact
[email protected] Publication March 2010 EPRG WORKING PAPER Financial Support EPSRC www.eprg.group.cam.ac.uk Gas Supply Security in the Baltic States: A Qualitative Assessment Sachi Findlater1 and Pierre Noël Electricity Policy Research Group (EPRG), University of Cambridge March 2010 . 1. The context Energy security has been moving up the European policy agenda over the last decade, recently becoming a prominent theme of the European political debate. This has been driven largely, though not entirely, by the rise in concern about the security of natural gas supply to Europe, particularly supplies from Russia. The crises of January 2006, and especially January 2009, where supplies of Russian gas to Europe via Ukraine were entirely disrupted for two weeks in the middle of a cold winter, have been key milestones in this process. The three Baltic States (Estonia, Latvia and Lithuania) were not impacted by the crisis of January 2009 as none of them rely on transit through Ukraine for their gas imports.