An ordinary working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Loyola de Palacio, the European Commission’s Vice President, was held today at Gazprom’s Headquarters.

The meeting took place within the frames of the intensive and constructive dialogue conducted between Gazprom and the European Commission on changes in the European energy sector.

The parties addressed principle changes to be made in the European energy policy due to the liberalization of the European Union’s gas market.

The meeting specially emphasized that natural gas long-term contracts were a pivot of sustainable gas deliveries to European countries.

A. Miller and L. de Palacio pointed out the importance to build up a predictable and stable legislative system regulating the working conditions on European gas markets. The participants expressed a common opinion that the liberalization must spur the favorable investment environment in Europe.

“It is indispensable to establish clear, economically substantiated and long term prospect-oriented framework conditions fostering large-scale investments into developing new fields and creating the gas transmission, storage and distribution infrastructure,” – underlined A. Miller.

Natural gas consumers will receive an opportunity to freely select a gas supplier only provided Europe has enough gas transmission capacities to be largely developed yet.

The meeting also stressed that the Russian party was particularly concerned with the ideas to reduce natural gas prices on the EU border at the expense of suppliers. This may lead to growing risks for gas produces and affect the security of gas deliveries going to Europe.

“Lower gas prices for European consumers are possible through cutting gas distribution expenses and optimizing taxation in the EU countries,” – stated A. Miller.

Loyola de Palacio expressed her concerns over the low gas pricing inside Russia and its insufficient growth rates, which, in her opinion, prevents foreign companies from infiltrating the Russian gas market.

Reference:

According to the forecast of the International Energy Agency, in order to ensure secure natural gas deliveries to Western Europe up to 2030, over USD 200 billion will need to be channeled only for constructing new gas transmission, storage and distribution facilities due to the growing gas consumption in Europe. According to the forecast, the same amount needs to be invested in developing new gas fields.

DIVISION OF RELATIONS WITH MASS MEDIA