Investing in European energy security

On the threshold of Gazprom's annual General Shareholders Meeting, the Company's headquarters hosted today Press Conference “Gas Export and Enhancing Reliability of Gas Supply to Europe”. 

Taking part in the Press Conference were Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom Export; Pavel Oderov, Head of the International Business Department of Gazprom; Sergey Kupriyanov, Press Secretary of the Management Committee Chairman – Deputy Head of the Information and Communications Department of Gazprom; Alexander Syromyatin, Deputy Head of the Project Management Department of Gazprom.

The Press Conference pointed out that the European demand for Russian natural gas continued to grow. Thus, in 2013 the volume of Gazprom Group’s gas sales to the countries beyond the CIS hit the record figure of 174.3 billion m³ since the 2008 crisis, which accounts for one-third of the total gas consumption in Europe. Italy took the lead in terms of growth; the volume of gas exported there increased by 67% compared to 2012. Gazprom’s gas sales to the UK grew by 42%, export to Germany – by 21%. In 2013 gas sales beyond the CIS exceeded RUB 1.687 billion.

According to consensus forecasts, by 2025 the gap between domestic production and consumption in Europe will amount to 168 billion m³, and by 2035 – to 225 billion m³. This creates objective prerequisites for Gazprom to further strengthen its positions in the European market.

The Company makes consistent efforts aimed at increasing the energy security of European consumers. For instance, the South Stream gas pipeline construction is being implemented in strict compliance with the schedule. First gas via the new route will be supplied in late 2015, as was originally planned. The Nord Stream gas transmission system is technically ready to be fully loaded.

UGS (underground gas storage) capacities located near consumer markets represent another essential element of reliable gas supply. Gazprom goes on implementing the construction projects for the Katharina and Etzel UGS facilities in Germany, as well as the Damborice UGS facility in the Czech Republic.

With a view to boost the export volumes, the Company also actively develops the NGV segment. High eco-friendliness and economic attractiveness make natural gas the fuel of choice for motor and sea transport. As of late 2013, Gazprom’s companies owned 31 CNG filling stations in Europe.

Special attention was given to Ukraine. In particular, it was noted that Naftogaz of Ukraine had to go on paying off the debt for Russian gas.

In addition, the Press Conference addressed Gazprom's activities aimed at expanding its liquefied natural gas export as well as the talks over export contract prices and the ongoing dialogue with the European Commission.

Edited from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/05062014/investing_in_european_energy_security/