Review of the Soviet gas industry in 1990

Soviet production of natural gas increased by only 18.6 billion cubic meters (2.3%) in 1990, from 796.1 billion cubic meters (BCM) to 814.7 BCM. This was the smallest annual increment and the lowest rate of growth in more than two decades. During the 1980s, annual growth typically had been in the 6-8% range, with yearly increments of 40-50 BCM. Of the national total in 1990, enterprises of the Gazprom Concern (formerly the Ministry of the Gas Industry) produced 748.0 BCM, while the Ministry of Oil and Gas produced 66.7 BCM; the latter would be mostly associated gas. Given the USSR's ample resource base, it appears that the Soviet economy is experiencing increasing problems absorbing natural gas, particularly as Soviet aggregate economic output falls along with total energy consumption. During the 1980s, when the gas industry was growing so rapidly, the Soviets absorbed the massive increments in gas supply by directing most of it to a few very large consumers - electric power stations, iron and steel plants, and nitrogenous fertilizer centers. Currently, 54.3% of gas is used for electric power generation; 32.6% in industry; and only 13.1% by the housing and municipal sector. Although the share of housing units usingmore » either natural gas or LPG (liquefied petroleum gas-butane and propane) is fairly high in the Soviet Union - 84.8% - this is mostly for cooking rather than heating, so gas use per unit is relatively small. Another problem is that the availability of gas among households is very uneven across the republics and between rural and urban areas. A table gives statistics on gas production in various regions from 1970-1990.« less