Gazprom: natural gas leading energy source

The Gazprom Board of Directors held a meeting to discuss the outlook for natural gas competitiveness in the global energy mix including coal, the company said in a statement.

The meeting considered various scenarios of the future of the global energy industry. It was noted that the main drivers of this sector in the global economy would be tightening the environmental standards and all-round rising costs of energy supply, supported by a necessity of reinforcing the energy security, Gazprom said.

“In this respect, natural gas has some big advantages over other energy sources – most importantly, natural gas is more eco-friendly than other fuels and more attractive investment-wise, compared to renewables. In addition to its environmental and investment benefits, natural gas has better process characteristics, which is critical for the power generating sector. Unlike renewables, natural gas is a more available energy source, independent from weather conditions. Moreover, low capital expenditures and short period of construction of combined cycle power plants play a key role in the power generating business,” according to the statement.

“Many analysts say the European market having primary importance for Gazprom, will be mainly affected by the shrunk domestic gas production, growing imports as well as tough environmental requirements. Particularly, some European countries are expected to pump up the costs of greenhouse gas permits and introduce the rigid rules and regulations related to operation of power stations,” the statement said.

According to the statement, the prospects for natural gas sale look positive in the Asia-Pacific market, where China will be a major gas consumer – it is explained by the fact that the Chinese economy is booming, but at the same time the environmental situation is worsening across the country.

“Hence, Gazprom is in step with the evolution of the global energy industry. The company fulfills the gas supply requirements of its European partners and confidently enters new sales markets. Gazprom makes energetic and comprehensive efforts to develop new fields and expand its gas transportation network. In addition, the company builds up the LNG production capacities and promotes natural gas use as a road and marine fuel.”

Press Release, September 17, 2014; Image: Gazprom