Gazprom Board Boasts of High Exports
Russian export monopoly Gazprom said September 27 its long-term strategic goal for Europe was to "bolster its position as the leading gas exporter via, among other things, ensuring excellent supply reliability, diversifying transportation flows, and optimising marketing effort." In 2016, Gazprom exported a record 179.3bn m³ (using Russian measurements) to Europe.
Its statement made no mention of other gas sources, including US LNG, which has so far made negligible impact on European gas supply outside the Iberian peninsula. However as US exports grow, more is expected to arrive in Europe, where it will have to compete with cheaper-to-deliver Russian pipeline gas.
Gazprom’s traditional market, Europe, "will see a deepening decline in domestic gas production. Russian pipeline gas, the demand for which has been on the rise in Europe over the last years, will continue to be the most economically viable energy source for the region," the state-run giant said.
According to international industry experts, EU natural gas demand will remain stable in the long term. With domestic production in an ongoing slump, EU countries will need considerable amounts of additional imports, prompting suppliers, including Gazprom, to boost their exports to the region, it said.
Globally, said Gazprom, demand for conventional fuels was bound to go up, thanks to the worldwide growth in energy demand and gas likely to rise at the quickest pace. Power generation was the most promising sector in that regard, it said.
The largest such growth will occur in the Asia-Pacific region. According to most projections, China will account for about a quarter of the increase in global gas consumption in the medium and long term, mostly because of its environmental policy.
Gazprom said that its position in the global market would also remain stable over the long term thanks to, inter alia, an immense resource base and a well-developed production and transportation infrastructure. It said it was diversifying the flows and routes of its pipeline gas exports and to advance LNG production. This work will help Gazprom further improve its competitiveness, boost its exports, and strengthen the position of Russian gas in the global market, it said.
William Powell