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Gazprom to meet increased European demand and secure additional gas amounts for premium Asia-Pacific marketApril 22, 2014, 12:20
The Gazprom Board of Directors took notice of the information about possible changes in the global gas market. It was highlighted that the gas industry development was increasingly tied to the enhanced energy security specified by rising investments needed for the gas infrastructure expansion, as well as to geopolitical issues.
The majority of considered scenarios envision that Europe, the top priority market for Gazprom, will face a long-term growing gas demand with declining domestic gas production. The consumption rates may be increased through reviving the role of natural gas in the power sector and a wider use of NGVs and gas-powered marine vessels. The upturn in demand will boost the imports of pipeline gas and LNG.
Another continued trend mentioned in some scenarios is heightened capital and operational expenditures for new international LNG projects. The situation is complicated by government initiatives aimed at limiting LNG export in a number of countries that can potentially provoke the gas and LNG deficiency in the global market.
In this situation the buildup of gas supplies to Europe, inter alia, through Nord Stream and South Stream, as well as LNG projects in the Baltic Sea and the Far East will allow Gazprom not only meeting the high demand of European consumers, but also securing additional Russian gas amounts for the premium Asia-Pacific market.
Information Directorate, OAO Gazprom