13 Mar 2018 16:32

OMV: Europe needs Nord Stream 2; LNG from U.S. is not reliable supply source

LONDON. March 13 (Interfax) - Austrian oil company OMV, one of Gazprom's foreign partners in the construction of the Nord Stream 2 gas pipeline, believes that shipments of liquefied natural gas (LNG) do not provide the same reliability as Russian pipeline gas.

OMV board member Manfred Leitner said in a presentation of the company's strategy, that OMV believes that gas demand will rise in Europe while its own production falls, particularly in the Netherlands and the UK.

OMV's strategy said that European gas demand will grow from 460 billion cubic meters (bcm) per year to 500 bcm in 2030 due to the switch from coal to gas. Consumption of imported gas will rise from 330 to 375 bcm per year as European gas output falls from 130 to 85 bcm per year.

He said that the Nord Stream 2 pipeline is essential to provide gas supply security to Western Europe, "because we don't think that LNG will give the same security."

"LNG is a flexible source, but it goes where the highest prices are, so we can never be certain that it will arrive in Europe," Leitner said. He also said that "we are now discussing long-term LNG supply contracts with American companies for our LNG terminal in Rotterdam and we are not getting it at European pricing."

"This is already an indicator," Leitner said.