Gazprom sees European power plants switching from coal to gas
MOSCOW. Feb 2 (Interfax) - Gas is again successfully competing with coal in European power generation, Gazprom deputy CEO Alexander Medvedev said at a meeting with investors in New York.
He recalled that European gas consumption has fallen by almost 50 billion cubic meters in the past decade due to competition from coal. "After a few years, natural gas pushed out by coal is again returning to the power generation sector," Medvedev said.
He said that gas consumption in Europe's electric power sector grew by 15% in the first nine months of 2015.
In the UK, the threshold price at which it is lucrative to switch from coal to gas is $190 per 1,000 cubic meters, he said. Gas is currently trading at about $160 on the UK NBP.
Gazprom supplied 31% of Europe's gas in 2015 compared to 30% in 2014. "We did not only maintain our share, but also increased it. 31% is the highest level in the past decade," Medvedev said.
He also expressed the hope that "oil prices will begin to gradually recover in the foreseeable future."
