Gazprom is committed to meeting European demand for gas, says export manager
AMSTERDAM, Nov. 3 (Reuters) – Russian group Gazprom (GAZP.MM) is committed to meeting European gas demand and wants to achieve a balanced and predictable market, the company’s export director said on Wednesday.
Speaking in a recorded message broadcast at the Flame Gas and LNG conference in Amsterdam, Elena Burmistrova said that unlike spot and short-term contracts, long-term oil-related contracts with firm purchase terms are those who can achieve balance and predictability.
Russia supplies a third of Europe’s gas and its supply intentions are critical at a time when spot prices across the continent have skyrocketed, hitting households and businesses.
Russia has said it is fully meeting its contractual obligations, but the International Energy Agency and some European politicians have suggested Moscow could do more. Moscow denies using gas as a political weapon.
“I repeat, we are not interested in either record gas prices or record gas prices. These lead to a deterioration in gas demand in Europe, which clearly goes against our interests in as a producer and supplier of gas, “said Burmistrova.
“We want to see a balanced and predictable market, where we and our customers can successfully grow our business.”
Burmistrova said that from January to mid-October, deliveries to European partners increased by more than 15 billion cubic meters, or 13%.
Gazprom’s long-term business strategy is based on assessments of the effective potential demand in Russia and in the main export markets.
“We have always championed long-term contracts with firm purchase terms, and we will continue to do so. Our industry is capital intensive and has a long investment cycle, and only such long-term contracts can build confidence. (and) make the market balanced and predictable, and therefore profitable for investors. “
Russia sends gas to Western Europe through several different routes, including via Belarus and Poland using the Yamal-Europe pipeline, which has an annual capacity of up to 33 billion cubic meters.
Yamal-Europe, which normally sends gas westward through Poland to Germany, was stuck in reverse on Wednesday after requests to transport gas westward to Germany abruptly withdrawn, according to data from the website of its German operator.
Reporting by Marwa Rashad; Editing by Alex Richardson and David Holmes
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