Key events
Andrey Panchenko has been appointed as the new General Director of the State Production Association «Belenergo.» Previously, he served as the General Director of RUE «Vitebskenergo.»
On October 14, 2024, NPP unit No. 2 was reconnected to the grid following its first scheduled preventive maintenance, which began on July 26 and lasted 80 days—more than twice the planned 36 days. This extended repair period means that the maximum annual capacity factor achievable by the second unit will be 78%, significantly lower than the designed 90%.
A 50 km oil pipeline from the technological site of the Kartashovskoye field to the separator of capacitive bullet No. 3 at the oil preparation plant has been commissioned.
China’s experience will be used to extract hard-to-recover oil, Belorusneft said.
Over 60% of the total oil produced in Belarus is hard-to-recover, Deputy Minister of Natural Resources and Environmental Protection Viktor Galanov noted that it is impossible to reach the volumes that were produced in Soviet times, however, the growth is increasing every year.
Repairs were completed on power unit No. 2 at the «Gomelskaya TPP-2» branch of RUE «Gomelenergo.» The maintenance work included the gas-air tract of the boiler, the regenerative air heater, and the generator.
The extensive shutdown maintenance of the 2024 technological facilities within the delayed coking complex has been completed. Key repairs included «Hydrotreating No. 3,» a crucial component of the complex, along with the «Hydrotreating and mild hydrocracking» unit.
Public statistics indicate significant financial losses in the Mozyr and Novopolotsk districts, home to Belarus’s major oil refineries. The Naftan and Polimir complexes in Novopolotsk account for 98% of the city’s industrial output, while the Mozyr Oil Refinery produces 95% of the Mozyr district’s output. In Novopolotsk, the total net loss has exceeded 1 billion rubles ($305 million), a sharp contrast from the nearly 39.6 million rubles ($11.2 million) net profit during the same period last year. Similarly, from January to August, the Mozyr district recorded a net loss of almost 660 million rubles ($202 million), compared to a net profit of 262 million rubles ($80 million) in the previous year.
On September 26, the Economic Court of the Gomel Region scheduled three trials involving claims by Belarusneft against foreign companies: Drillmec SPA, Forum Energy Technologies (UK) Ltd, and Sercel S.A.S., as reported by Flagstok. These companies are manufacturers—Sercel produces seismic equipment, while Drillmec specializes in drilling rigs. Belarusneft has reportedly started replacing this equipment with Chinese alternatives. The disputes center on claims of «failure to fulfill or improper fulfillment of obligations under contracts for the sale and purchase of goods,» which include alleged issues of short delivery, delayed delivery, and outstanding payments for products and services.
Statistics and data
«In the first nine months of 2024, Belarus saw a 25% increase in electrical network construction compared to the same period last year,» reported Energy Minister Alexei Kushnarenko. The 2020-2025 electric power development program has prioritized network expansion, with a notable boost in investments focused on this area of the energy system.
In the first nine months of 2024, Belarusian households consumed 603.7 million kWh for heating and hot water, approaching the 2025 target of 900 million kWh, likely to be reached by year-end. Overall electricity consumption increased by 6% year-on-year, totaling 31.7 billion kWh. During this period, the Belarusian Nuclear Power Plant generated 12.6 billion kWh—surpassing its total output from the previous year. Analysis shows that, aside from scheduled maintenance of the second unit, the plant operated consistently at nominal capacity.
Belarus has successfully mined 2 million tons of peat in 2024, meeting the production target for the year. The mining season has now concluded.
In the Brest region of Belarus, thermal renovation is planned for more than ten apartment buildings in 2024. Under Decree No. 327 «On increasing the energy efficiency of apartment buildings,» two-thirds of the owners of these buildings have agreed to carry out the renovation work. The decree allows for 50% of the costs to be covered by the budget, with the remaining 50% added to utility bills and spread over 10 years without interest.
However, the small number of buildings selected for renovation (10 buildings in a region with 1.3 million people) suggests that even with such generous subsidies—where the population pays only about 20% of the total cost—there is little motivation among homeowners to insulate their buildings. This indicates that even substantial financial support may not be enough to encourage widespread participation in energy efficiency initiatives.
Energy Minister Alexei Kushnarenko reported that the Belarusian Nuclear Power Plant currently accounts for about 40% of the country’s electricity balance. He noted that both power units of the plant are operating at full capacity. While this share is at its maximum during the period of low demand in the summer, it is expected to decrease as consumption rises with the onset of colder temperatures. Additionally, the upcoming scheduled maintenance of the first power unit will further reduce the plant’s contribution to the energy balance by the end of the year.
Statements
Belarusian President Alexander Lukashenko announced that Minsk and Rosneft have reached an agreement to explore the subsoil of the Gomel region in search of oil. However, it remains unclear why Rosneft would be involved in this exploration, especially given that Belarusian specialists are already highly qualified and have been successful in increasing oil production. In contrast, Rosneft’s production has been declining.
Belarus and Russia are continuing negotiations on the creation of a unified gas market. The gas market of the Union State may be further synchronized with the common market of the EAEU. This news item is included in the digest topic, and the analysis of this statement is covered in the issue topic.
Topic of the Issue: Common Natural Gas Market
On October 10, Deputy Prime Minister of Belarus Viktor Karankevich stated at the St. Petersburg International Gas Forum that Belarus and Russia are «continuing negotiations on building a unified gas market.» He emphasized that one of the key topics of the forum was the discussion of collaboration within the frameworks of the Union State and the Eurasian Economic Union in forming common gas markets.
We have published an analysis of the agreement on the common electricity market of the Union State. The conclusion drawn from the article is that this document was likely created to showcase progress in Belarus-Russia integration, as it does not introduce any substantial changes to the current situation. Another interpretation is that it serves as a potential replacement for the BRELL agreement once the three countries withdraw from it.
Discussions on a common gas market and the equalization of gas prices between Belarus and Russia have a long history, beginning with the early integration efforts within the Customs Union and the Eurasian Economic Union (EAEU).
2009 and the Customs Union: Joining the Customs Union with Russia and Kazakhstan raised hopes for the equalization of energy prices for Belarus, as the union aimed to ensure the free movement of all goods, though energy was excluded.
2014-2017 and the EAEU: Following the establishment of the EAEU, the issue of equal gas prices was revisited. However, progress remained slow as the countries struggled to agree on a unified pricing methodology. In 2019, the target date for the formation of the common market was set for 2022.
2016 Conflict: In response to Lukashenko’s demands for lower gas prices, Russia increased pressure for deeper integration within the Union State.
2021 Integration maps In September 2021, Putin and Lukashenko signed 28 union programs, including one focused on the creation of a unified gas market, which outlined the main steps and deadlines.
«A document on the creation of a unified gas market within the Union State will be signed by December 1, 2023,» Putin stated.
The unified electricity market of the Union State is set to begin operations on January 1, 2024. An interstate agreement is currently being prepared to establish the rules for its functioning.
However, as of October 15, 2024, discussions have shifted. It appears that instead of the common gas market of the Union State, the focus is now on synchronizing the formation of the gas market in the EAEU. This suggests that Belarus has left hope for equalization of energy prices within the Union State and is now placing its hopes solely on the EAEU. At the same time, Belarus continues to fulfil its integration obligations in good faith, even if it means ceding sovereignty.
