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Gazprom chief Miller meets EU leaders
by Daniel J. Graeber
Washington DC (UPI) Apr 01, 2014


International Gas Union boss unfazed by European crisis
Washington DC (UPI) Apr 01, 2014 - The crisis in Ukraine shouldn't result in any near-term natural gas issues in the European market, the head of the International Gas Union said.

European consumers get about a quarter of their gas needs met by Russia, though most of that runs through the Soviet-era transit network in Ukraine. Russian energy company Gazprom cut gas supplies to Ukraine because of contractual issues in 2009 and the latest turmoil has sparked concerns about energy security in Europe.

International Gas Union President Jerome Ferrier said from Sydney the European market is less dependent on Russia that it has been in the past.

Ferrier added European communities can draw on other transit options or rely on liquefied natural gas deliveries in the event of an energy crisis.

"We are not really concerned," he said Tuesday. "It's not in the interests of either Russia or the Western companies buying the Russian gas to disrupt, interrupt or make any difficulty for the supply of Russian gas."

Gazprom this week said it would increase the price of natural gas for Ukraine by $100 per 1,000 cubic meters, the standard purchase volume. Cash-strapped Ukraine would then have one of the highest gas debt burdens in the region.

Russian energy company Gazprom said Wednesday its chief executive, Alexei Miller, went to Brussels to discuss his commitments to the European energy sector.

Miller met in Brussels with European Commissioner for Energy Gunther Oettinger and German Foreign Minister Frank-Walter Steinmeier.

Gazprom in a statement said both sides discussed a "wide range" of bilateral issues.

"The parties confirmed their interest in maintaining the mutually beneficial relationship built over the decades of successful collaboration," the Russian company said in a statement.

There was no public statement from Oettinger or the German foreign minister on the meeting with Miller.

European leaders have tried to add a layer of diversity to a natural gas market that's dependent on Russia. Ukraine's role as a transit nation for Russian gas has added to concerns about European energy security.

European officials have looked to supplies from gas-rich Azerbaijan as a Russian alternative, along with imports of liquefied natural gas.

Gazprom said in its statement it wasn't just a major gas supplier to Europe, with a 40-year track record of reliability. To date, it said, it's the only gas supplier to have invested "billions" of dollars in developing Europe's gas network.

Gazprom is moving forward with the South Stream pipeline, which would avoid Ukraine. European leaders said they're reluctant to embrace the project given the recent crisis involving Ukraine.

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