Manufacturing is doomed due to the first-ever artificial destruction of natural gas trade, CEO Aleksey Miller says
The EU is intentionally destroying demand for natural gas, Gazprom CEO Aleksey Miller stated at a company meeting to discuss the year’s preliminary results.
“We are well aware of the situation in Europe, where they have taken an unprecedented step,” the chief executive said. “There, for the first time in history demand for natural gas, a primary energy source, is being artificially destroyed.”
He insisted that the policy of eliminating one of the most environmentally friendly energy sources is forcing “some EU member states to de-industrialize.”
Global demand for gas, however, is expected to increase by 43% in the next 25 years, Miller noted, adding that the energy giant is ready, as it has been developing cooperation with nations that are interested in reliable energy supplies.
He pointed out that Gazprom has been working with Asia for a long time.
“The volume of gas supplies to China in 2023 will be over 22.5 billion cubic meters, exceeding the contractual obligations by 500 million cubic meters,” Miller stated, adding that Gazprom plans to deliver as much as 38 billion cubic meters of natural gas to East Asian nation.
Gazprom supplies natural gas under a long-term contract sealed with the China National Petroleum Corporation (CNPC). The Power of Siberia pipeline is part of a $400 billion, 30-year agreement between Gazprom and the CNPC clinched in 2014. Russia’s gas exports to China are projected to reach 100 billion cubic meters annually, taking into account a transit pipeline through Mongolia.
Russian gas exports to the EU have dwindled due to Ukraine-related sanctions and the sabotage of the Nord Stream pipelines last year, previously Russia’s key gas route to the region. However, Gazprom has successfully redirected its energy trade towards Asia, with China emerging as its largest importer.
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