Gazprom will develop its capacity if Europe increases long-term gas contracts - Novak

MOSCOW. Oct 15 (Interfax) - Russian gas giant Gazprom will develop its production capacity further if Europe increases long-term contracts for gas, Deputy Prime Minister Alexander Novak said.

"There is production capacity, and this is not an instantaneous thing. It cannot be increased by waving a magic wand, this requires - if one is acting based on long-term contracts - investment, as well as increasing production volumes," Novak said in an interview with radio station Business FM.

"Therefore, of course, if there is an increase in orders from our European partners and an increase in the volume of long-term contracts, supplies, I think that Gazprom, of course, will develop its production capacity even further compared even to today's, which is already at maximum levels compared to previous years," Novak said.

"We're proceeding from the assumption that at present the European market is fully supplied with gas, because overall imports plus their own production cover the internal consumption of the European market. [...] There is no gas shortage," Novak said.

However, there is a problem related to the fact that the level of gas reserves in storage in Europe is now at its lowest in five years, he added.