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European market has no alternatives to Russian gas, Energy Ministry believes

Moreover, deputy minister believes that foregone volumes of gas exports to Europe will not be critical for Russia if the European Union attempts to work with other suppliers

MOSCOW, October 17. /TASS/. There are no alternatives for the Russian pipeline gas on the European market, Deputy Minister Anatoly Yanovsky said in an interview with TASS, adding that other suppliers cannot offer such low prices.

"Our commodity is a single option. Neither the Americans, nor the Qataris, nor the Norwegians, nor Africans can supply such volumes for a low price like that," he said.

Yanovsky considers it necessary for Russia to let its European partners have a try to agree with other suppliers. "They will eventually turn to (Russia) all the same, no one wants to spend cash," he said.

Moreover, deputy minister believes that foregone volumes of gas exports to Europe will not be critical for Russia if the European Union attempts to work with other suppliers.

"Speaking about the structure of our revenues, exports of the fuel and energy complex amounts to around 60%, with gas totaling around 12%. It appears that the decrease of supplies of those 10-20 bln cubic meters will not have a decisive influence on the country’s economy," he explained.

Poland's PGNiG signed a 20-year contract with the US’ Venture Global LNG on supplies of 2 mln tonnes of liquefied natural gas (LNG) per year to Poland on a ‘free on board’ formula earlier on Wednesday.

Poland consumes 15 bln cubic meters of gas per year. The country produces one third of that volume on its own territory, and imports the remaining volume of gas. Russia’s Gazprom is the main gas supplier to Poland, which can purchase 10.2 bln cubic meters of gas per year as stipulated by a long-term contract.

The parties did not disclose the price of deliveries. However, President of PGNiG’s management board Piotr Wozniak said that LNG purchases from the US would be almost 30% cheaper for Poland than gas purchased from Gazprom.