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Russia capable of meeting growing demand for gas in Europe and China — Gazprom CEO

September 17, 2014, 17:38 UTC+3

As Russia’s major producer and exporter of natural gas, Gazprom plans to produce 463 billion cubic meters of gas in 2014, CEO Alexey Miller says

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Gazprom CEO Alexey Miller

Gazprom CEO Alexey Miller

© ITAR-TASS/Sergey Fadeichev

MOSCOW, September 17. /ITAR-TASS/. Russia is capable of meeting the growing demand for gas in Europe and China, Gazprom’s CEO Alexey Miller said at a meeting with Russian President Vladimir Putin on Wednesday.

“We have the ability to satisfy the growing demand on the Chinese market, in the east, and the demand in the European Union,” Miller said.

Gas deliveries to EU in line with contracts

Gas supplies to consumers in Europe are proceeding in line with contracts, Miller said. Gazprom has already pumped 3.8 billion cubic meters of gas to underground storage facilities in Europe. Overall, it plans to pump 5 billion cubic meters, Miller told Russian President Vladimir Putin on Wednesday. “Gazprom is carrying out stable deliveries of gas to European consumers. We are fully in line with our contract obligations,” Miller said.

On Putin’s request, he explained the issue of additional gas volumes supplies. “We will be able to satisfy the increased demand of the European consumer in the future,” he said.

Miller added that by early September, the volume of Russian gas supplies for export has already exceeded the target indicator by 3 billion cubic meters.

Gas talks with China

The company is holding talks on contract to supply 30 billion cubic meters of gas to China for 20 years, Gazprom CEO added. Gazprom may supply up to 100 billion cubic meters of gas to China along the western export route over a period of 20 years, Miller said. “As part of negotiations with China, various volumes for the western route have been made public,” he said. “A possibility of supplying from 60 bcm to 100 bcm is being considered," Miller noted.

Miller recalled that the western route envisions deliveries of crude to customers in China from Western Siberia. It has a number of advantages, as it enables Russia to engage the previously built West-Siberian gas infrastructure. Also, thanks to the plans for gas processing in Western Siberia this route will require less investment than the Eastern Supplies Route.

Miller stressed a possibility of a continuous buildup of supplies along the eastern route depending on China’s actual demand.

Gazprom's plans for gas production in 2014

As Russia’s major producer and exporter of natural gas, Gazprom plans to produce 463 billion cubic meters of gas in 2014, Miller said. According to Miller, Gazprom has an upstream capability of 617 bcm.

He also told Putin about the performance under the program of ramification of gas distribution services, which the corporation is implementing in 67 constituent regions of the country. At the end of 2014, the provision of gas to households across the country is expected to reach 65%. Miller added that the availability of gas to household owners in rural areas had grown 20% since the launch of this program.

Gazprom will increase the amount of gas in its underground storage facilities to a record level of 72 billion cubic metres, Miller said. Gazprom CEO said 60.5 billion cubic metres had already been stored and Gazprom was planning to finish filling up its underground storage facilities in the next month and a half.

This will increase gas storage facilities’ productive capacity by 8% in the coming winter, he said.

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