Miller: Gazprom has no competitors in Europe within 10,000 km
BELGRADE. May 29 (Interfax) - Gazprom is confident that Europe's dependence on gas will grow and that the Russian gas giant does not have any competitors in covering Europe's gas needs within a radius of 10,000 km.
Gazprom accounted for two thirds of the European Union's gas imports and 30% of its gas consumption in 2014, Gazprom CEO Alexei Miller said at the annual meeting of the European Business Congress.
"And the share of imports on the European market will only increase. In the past 15 years the share of imports has grown by 17%, and in the next 15 years it will grow by a comparable amount," Miller said.
"And therefore the question: from where, from what sources will Europe get gas? At one time the European market put hope in liquefied gas, but Europe has lost the battle for LNG," Miller said, noting that the share of LNG in Europe has shrunk to 17% from 30%.
LNG will not play a major role in Europe in the near future, he believes. "And this is not only a question of prices, but a question of the competitiveness of Russian gas. And Iran has said that it is giving priority to production of LNG and shipments to Southeast Asia. We don't have any competitors in gas shipments within a distance of up to 10,000 km from the European market. There are none!" Miller said.
"According to our estimates, gas consumption in gas-fired generation in Europe could increase by 12%. In the very near future there will be a reassessment of the role of coal on the European market. And such decisions are not far off at all," Miller said.
He also said that Europe has contracted 30% of the current level to 2030. "And the issue of contracting is an issue that is absolutely in demand. Particularly since 15 years is even less than our usual long-term contracts - 20-30 years," Miller said.
He recalled that 75% of regasification facilities in Europe are now sitting idle. "There are also such questions in regard to pipeline gas," Miller said.
He also commented on other gas supply projects in Europe. The Eastring project does not yet have a feasibility study or a set of participants, and negotiations have not been held with possible gas suppliers, he said. "And the question of whose gas will end up in this gas pipeline is significant," Miller said.
The Eastring project, which is being discussed by Slovakia, Bulgaria, Hungary and Romania, could connect the eastern point of the Ukrainian gas transport system (Velki Kapushany) and the Romanian-Bulgarian transit line.
Commenting on the TAP gas pipeline from Azerbaijan to Europe, Miller said that four years ago the participants in this project planned to start shipments in 2017. "Now they're talking about 2021, and every year for four years a year is added. And experts say that this trend of adding a year will continue," Miller said.