19 Feb 2018 11:43

Gazprom CEO: production moving to Yamal, transport "objectively" shifting to Nord Stream from Ukraine

VLADIVOSTOK. Feb 19 (Interfax) - The shift of the main volumes of Russian gas transport from the central corridor served by Ukraine to the North, served by offshore gas pipelines across the Baltic Sea, is an objective process related to the shift of Gazprom's gas production center to the Yamal Peninsula, the Russian gas giant's CEO, Alexei Miller said on the Vesti v Subbotu with Sergei Brilev program on TV channel Rossiya 1.

European politicians have said that preserving transit shipments of Russian gas through Ukraine should be a condition for implementing the Nord Stream 2 pipeline project.

"As for Ukraine, of course we now understand that objectively the northern gas transport corridor for taking gas from Yamal is becoming the main gas transport corridor for Gazprom, for the Russian Federation, and objectively the central gas transport corridor, through which gas has been shipped to Europe until recently, through Ukraine, is losing the important role in the Russian Federation that it had even 10-20 years ago. Shipping gas to Europe through the northern corridor, through the [future] Nord Stream 2 gas pipeline, is the shortest route for shipping Russian gas. The most efficient and the cheapest," Miller said.

Nord Stream 2 AG secured permission in January for construction and operation of the offshore section of the Nord Stream 2 pipeline in the territorial waters of Germany and the onshore section around Lubmin near Greifswald.

"Without a doubt, the permit that Germany issued, for construction of the Nord Stream 2 offshore gas pipeline in the territorial waters of Germany and the start of construction of a receiving terminal in the Greifswald area, without a doubt this is a key decision that is determinative for the future fate of the project," Miller said, commenting on this decision.

Speaking about the dynamics of Russian gas exports, Miller said: "For us an important factor is not just the price, but also the volume of demand. And the main factor in our revenue recently was the volume of gas shipments for export. Gazprom increased the volume of gas shipments for export by more than 30% literally in the last three years. As for gas prices, we should note that there was also an upward trend in 2017 and it is continuing now at the beginning of 2018. Such prices for oil are relatively high compared to the level there was before."