Novatek has no disagreements with Gazprom regarding competition in Europe

TASS Russian News Agency | Jan 23, 2020 at 7:01 AM

DAVOS, January 23. /TASS/. Russia's largest independent gas producer, Novatek, believes that there are no disagreements between the company and Gazprom on the competition in Europe of pipeline and liquefied natural gas (LNG). European consumers of Novatek LNG will not buy pipeline gas from Russia if Novatek leaves the market, but they will buy LNG from other countries, and Gazprom understands this situation, Head of Novatek Leonid Mikhelson told reporters on the sidelines of the World Economic Forum (WEF) in Davos.

"We have no difficulties with Gazprom," he said. Whether it will be Novatek or not, consumers will still buy LNG, so it better be Russian LNG. Gazprom understands this," Mikhelson added.

According to Mikhelson, Novatek supplies LNG to 28 countries, with more than 50% of its volume going to the markets of Asia, not Europe. He noted that the existing statistics are incorrect, since a significant part of Novatek's deliveries to Europe after transshipment is subsequently sent through the Suez Canal to Asia, and part goes to the Spanish market, where there is no access to pipeline gas from Russia.

Mikhelson noted that in March-April all long-term contracts with Yamal LNG will be operational, and they are mainly focused on the Asian market.