15 Dec 2022 11:36

Gazprom says EU attempts to extract itself from energy crisis with new LNG terminals like buying cups instead of water

MOSCOW. Dec 15 (Interfax) - The authorities of European countries have been attempting to resolve the situation with energy shortages by developing infrastructure for LNG receiving terminals; however, the sector remains underinvested in production, Kirill Polous, deputy head of the directorate at Gazprom , said in a statement.

"Having run into the problem of gas shortages, European companies are trying to solve it by actively developing the LNG receiving infrastructure. As a result, figuratively speaking, there is an attempt to satisfy the thirst for energy by buying cups rather than water," Polous said at the Gas of Russia 2022 forum.

"In attempting to solve the problem of gas shortages, European states are providing subsidies amounting to hundreds of billions of euros to buy LNG at exorbitant prices; and they are nationalizing large energy companies and discussing possibly imposing a price cap on gas. The gas shortage on the European market has already resulted in a change in trade flows and in growth in global prices. Heavy demand for gas in EU countries has caused a 'European price premium' for the first time in a long time," Polous said.

Polous also noted that the average price of gas on European trading floors has increased 2.5-fold compared to 2021, and 13-fold compared to 2020.

"Gas prices in Europe continue to fluctuate even now, and the measures underway to stabilize them in a number of cases contradict the laws of a market economy and are not providing the desired results," Polous said.