Do We Need The Nord Stream 2?

Speech of the GAZPROM Chairman A. Miller in Saint Petersburg October 4, 2018

“As you will know, in 2017 the volume of gas supply to the European market reached 194.4 billion cubic meters.These are the GAZPROM volumes. This figure indicates 8.4% growth in comparison to 2016.Today we start from 6% growth but proceeding from a higher absolute base of the record last year. This indicates that GAZPROM results of 2018 will strike a new record of gas supply to the European market.But here we must mark a few points. First, the absolute volume of supply will be higher than 200 billion cubic meters of gas.

What does it mean? This means that we will approach closely or probably reach the point of 205 billion cubic meters of gas supply to Europe.

This will fit the maximum yearly contract volumes for all our contracts of supplies to the European market.

In total we will reach 100% of our obligations which we have before our partners.

GAZPROM Chairman A.Miller

GAZPROM Chairman A.Miller

Without doubt a trend has emerged.

From every side, we see the demand for the Russian gas growing further.

We can see this in the framework of those negotiations that we had with the OMV on the side lines of this forum.

We witness that our traditional partners- not only OMV- state their intention to buy even larger volumes of gas.

With this we need to understand that those figures are very, very substantial.

That’s why we confirm that the new coordinate system proves that today on the gas market as a market of vendor has emerged.

And this is quite a new situation.

This is not the situation that we saw five to ten years ago. This is the first point.

Secondly. It deals with the question of demand for some gas transportation routes. In particular, the Baltic Sea – Nord Stream project.

During the last 12 months the load of Nord Stream became 7% higher than the planned project capacity.

I will remind you all that the project capacity of the pipeline is 55 billion cubic meters, but its technological possibilities allow us to export a little more.

During the last 12 months we supplied to Europe 59 billion cubic meters.

That means that the Nord Stream as an export gas transportation route from Russia was in demand for more than 100%.

This is the answers to this question: “Do we need the Nord Stream 2?”

All the existing capacities are being explored far beyond the projected ones. “