Exec: Gazprom plans to keep investment program for 5 years

ST. PETERSBURG, Sep 15 (PRIME) -- The investment program of Russian gas giant Gazprom will be retained for the next five years but the amount can fluctuate by 10–15%, Deputy CEO Oleg Aksyutin said Thursday at a gas forum.

"In the framework of implementation of our 5-year investment program, as we see, the program will be retained at the same level as today, there might be 10–15% fluctuations depending on the year," Aksyutin said.

The company continues to implement all investment projects, focusing on consumption inside Russia, he said.

Demand for long-term gas contracts is rising, including in Europe, because consumers want predictable prices, he said. "There is a paradoxical situation on the market: demand for long-term contracts is rising amid extremely volatile spot prices. The end consumers, including in Europe, want to get gas at predictable prices," Aksyutin said.

He also said that China is raising orders for gas shipments by the Sila Sibiri pipeline in spite of deceleration of demand growth in the country.

Europe will be able to receive a sufficient volume of liquefied natural gas (LNG) no earlier than in 2025 and will compete with Asia as an importer, which will lead to higher prices and lower availability, Aksyutin said.

He also said that renewable energy sources will be unable to replace the traditional ones in a tough economic period. The role of natural gas in the global energy balance will continue to increase, while the center of sales will shift eastwards.

Aksyutin said that the launch of the Nord Stream 2 pipeline could solve the E.U. energy issues.

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