The gas reserves in Russia are the largest in the world, and some fields developed in the Yamal peninsula will be exploited until 2132, according to the CEO of Gazprom.
Speaking at the 24th annual meeting of the International Business Congress, Gazprom boss Aleksey Miller outlined the future of Russian gas, announcing how many more years the gas reserves can be exploited.
“The gas reserves in Russia, Gazprom’s gas reserves are the largest in the world. We will not have problems due to the lack of reserves over the next 100 years,” he said at a meeting of the International Business Congress.
Several deposits in the Yamal peninsula
He detailed that some fields for which Gazprom was currently preparing exploitation in the Yamal peninsula (northern Western Siberia) would remain in service until 2132.
“Over the past five years, Gazprom has built a new center of extraction that will be essential for Russia and our foreign consumers for decades, even into the twenty-second century,” Miller added.
According to him, Gazprom’s excess production capacity likely to meet growing demand amounts to 150 billion cubic meters of natural gas. This ability to dramatically increase production levels in response to growing demand is Gazprom’s competitive advantage.
“No matter how cold the winter is, we are always a reliable supplier. We always fully honor our contractual commitments,” he concluded.
Soaring gas prices
As the winter period approaches, gas prices have skyrocketed in Europe. On Wednesday, 1,000 cubic meters traded at $963.9 before retreating slightly.
According to reports from Bloomberg, in the face of energy shortages, Goldman Sachs Group Inc. has warned that European industrial users should reduce their consumption. Inventories are at their lowest seasonal level in over a decade, and the winter season begins in about a month.
According to analysts at VTB Kapital, the rise in gas prices is due to growing demand while depots are poorly filled (70.75% as of September 14 against 93% last year), and energy production renewables decreased due to calm weather. In addition, the high prices of LNG in Asia do not allow it to increase its deliveries to Europe.