Gazprom: Launch of Nord Stream 2 could resolve EU energy crisis

By Al Mayadeen English
Source: Agencies
15 Sep 19:29
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A Gazprom official affirms that the Russian energy giant is still carrying out all of its investment projects.

Gazprom is still carrying out all of its investment projects. (Reuters)

Gazprom Management Committee Deputy Chairman Oleg Aksyutin said on Thursday that the Nord Stream 2 gas pipeline could solve all of the European Union's current energy problems, however, European politicians are opposing this decision.

"The launch of Nord Stream 2 could solve the problem of the European gas market balancing, but we see that this obvious solution is resisted by European politicians," he said.

Aksyutin made his remarks at the 11th St. Petersburg International Gas Forum.

"Renewable energy sources cannot become an alternative to oil, gas, hydroelectric power plants, nuclear power plants, and even coal in a difficult period for the economy," he added.

Elsewhere in his remarks, he affirmed that Gazprom, the Russian energy giant, is still carrying out all of its investment projects.

"Gazprom PJSC sees an increase in the demand from the Chinese parties for the supply of gas through the Power of Siberia gas pipeline, even in the face of a slowdown in the growth of gas demand in the country. This indicates a high demand for Russian pipeline gas in the Chinese market," Aksyutin said.

He stressed that significant LNG volumes in Europe may not appear until 2025, and competition with Asia will lead to higher prices and less availability.

Aksyutin stated that the EU's energy policy has resulted in higher LNG prices in Europe than in Asia.

He reiterated that only Russia can supply Europe with gas volumes comparable to the resources of the Siberia and Yamal fields while also offering comparable delivery terms.

"The role of natural gas in the global energy balance will continue to grow. The Russian gas market will develop dynamically due to gas processing, gasification of regions, and growth in the use of natural gas motor fuel. The center of the global gas industry is shifting to the East ... It can be assumed that the global gas market will acquire a new configuration," Aksyutin added.

It is worth noting that Gazprom reported a 15.9% year-on-year decrease in gas production to 300.8 billion cubic meters in the first eight and a half months of 2022, as per the company.

"From January 1 to September 15, 2022, Gazprom, according to preliminary data, produced 300.8 billion cubic meters of gas. This is 15.9% (56.8 billion cubic meters) less than [in the same period] last year," the company posted on Telegram.

Gazprom produced 514.8 billion cubic meters of gas in 2021, which was 62.2 billion cubic meters more than in 2020.