Gas prices tied to oil guarantee balance between supplier, buyer - Gazprom
BRUSSELS. May 30 (Interfax) - Tying the price of natural gas to oil product prices benefits both the supplier and the buyer of this unique energy commodity, Gazprom Deputy CEO Alexander Medvedev said in Brussels on Thursday at the conference on the gas aspect of the Russian-EU energy dialog.
"It makes it possible to ensure stable, predictable prices, without ruling out the possibility of adapting the contract to changing market conditions," Medvedev said.
"The main thing is that it guarantees maintenance of a balance between the interests of buyers and sellers," he said.
"I believe that replacing the mechanism that has taken shape in continental Europe - one that is proven and reliable - for an insufficiently independent flexible and liquid local spot market is exceedingly risky," he said.
That could jeopardize the reliability of supplies, which is the clear priority, Medvedev said, noting that severe winter weather this year exposed the risks of tying gas prices to the spot market.
