Gazprom may chose LNG instead of Europe pipelines

Russian gas monopoly Gazprom said on Tuesday it could build three large plants to liquefy gas instead of constructing pipelines to Europe because the continent sends mixed signals to Russia about its gas needs.

The statement echoes a comment by Russian Prime Minister Vladimir Putin earlier this month who said Russia may scrap its Baltic Sea gas pipeline project, Nord Stream, and build gas liquefaction plants instead if Europe keeps delaying the pipeline.

Alexander Medvedev, deputy chief executive of Gazprom, which supplies a quarter of Europe’s gas needs, said Putin’s words were not an empty threat.

“The prospects of building new gas liquefaction plans are absolutely real. Besides Shtokman there are at least two more projects of gas liquefaction plants both in East and West Siberia,” Medvedev told an industry conference.

“We have said many times that we are getting mixed signals from our European partners whether Europe needs Russian gas or not,” said Medvedev, who oversees Gazprom’s export operations.

“Some countries in Europe… are torn between an objective need to replace their gas generating capacities and political phobias linked to the rising dependence on Russian gas supplies,” he said.

This entry was posted on Wednesday, November 19th, 2008 at 4:29 pm and is filed under Business, World. You can follow any responses to this entry through the RSS 2.0 feed.