Shulginov: Only Russian pipeline gas can lead to lower prices in Europe

ST. PETERSBURG. Nov 1 (Interfax) - Only the supply of Russian pipeline gas can lead to a reduction in gas prices on the European market, Russian Energy Minister Nikolai Shulginov said during the St. Petersburg International Gas Forum.

He noted that before October, prices in Europe were at $400 per thousand cubic meters, and now they are approximately $600 per thousand cubic meters, which is primarily influenced by the "news factor." As an example, he cited the strikes at LNG plants in Australia. Shulginov also noted that in Europe the almost complete filling of gas storage facilities is being presented as a positive factor. "But this is not enough (...) any prolonged cold spell will lead to withdrawal from storage, and it will be necessary to buy additional gas," the minister said, noting that otherwise the underground gas storage facilities will be devastated.

Shulginov said Russia could provide adequate gas supplies at reasonable prices, given its huge reserves and low costs.

"But this is the topic... On the one hand, we must first agree that Russia can supply gas, including to Europe. It can supply to Europe if they want to reduce prices. Now their prices can rise again in various stages, but even then, only Russian gas can lead to a decrease. Because the LNG that is supplied has a different price, and the costs are high; we mean supplies from the American market," the minister said.

Gas price volatility will continue due to the upcoming winter period, as well as uncertainty regarding developments in the Middle East, Shulginov said.