Gazprom predicts no drop in European gas demand
European political goals to lessen reliance on Russian natural gas won't affect demand, the deputy chief executive of OAO Gazprom told Wednesday's edition of Hungarian business paper Vilaggazdasag.
Alexander Medvedev, deputy CEO of the Russian energy giant, was discussing European efforts to create new natural gas cross-border interconnectors that make supplies more efficient and reduce consumption.
"It doesn't matter how many of these connectors are built, they don't automatically increase the number of sources or the quantity of gas available on the market," Medvedev is cited as saying.
"This is an internal political priority of European Union countries which we don't think will have a negative effect on demand for Russian gas," he added.
He said Gazprom has completed the feasibility study of the planned new South Stream natural gas pipeline, launched to assure secure supply to Europe and circumvent Ukraine.
This has become a priority to avoid European shortages that were caused earlier by bilateral disputes.
Gazprom will announce the finalized details of the project in 2012, Medvedev said.
Regarding his company's pricing practices he stressed that the current oil-indexed formulas will remain in place, which are used as the basis of long-term contracts.
"Currently, a market built on spot prices isn't viable in Europe," Medvedev said.
"Continental spot markets aren't developed enough, aren't liquid, aren't flexible and they are also susceptible to outside shock effects which makes them easy target for speculation,” the paper quoted him as saying.
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