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    Gazprom favours European energy security: press

Summary

The Russian gas company said it is sending out more supplies to calm volatility in commodity prices.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Europe, Corporate, Companies, Europe, Gazprom, News By Country, EU, Russia

Gazprom favours European energy security: press

Russian energy company Gazprom is “pumping out from its reserves” in order to bring stability to the European gas market, an official told the BBC on October 12.

Deputy Foreign Minister Sergie Ryabkov said on the BBC’s “HARDTalk” programme that European energy security was a priority for Gazprom.

“We favour energy security of Europe; we want to work collaboratively,” he said. “Gazprom has in fact started pumping out from its reserves into the pipelines to stabilise the market.”

Russian president Vladimir Putin said last week that Russia was ready to help stabilise conditions in the energy market, hinting that Gazprom might step up gas exports to curb record high gas prices in Europe.

Wholesale gas prices rallied to an unprecedented $1,937/'000 mon October 6, after going from strength to strength in recent months on the back of a sharp increase in demand and constrained supply. While Gazprom says it is meeting its contractual obligations with customers, it has also been accused of withholding additional supply to drive up prices.

Ryabkov, however, said it was not in the company’s “interest to rock the boat further.”

The European economy is bracing for high natural gas prices and supply-side pressures ahead of the winter heating season. And analysis from consultant group Wood Mackenzie warns that a cold winter in Russia could limit Gazprom’s ability to send additional gas supplies through its Nord Stream gas pipeline network and Ukraine, adding “the sky could be the limit for European gas prices this winter.”