Chief of Russia’s Gazprom admits ‘difficult’ year

WASHINGTON

The head of Gazprom has said that the Russian gas giant had a challenging year, as the company seeks new markets following international sanctions over Moscow’s Ukraine offensive.

“I want to say right away that 2022, of course, has turned out to be very, very difficult,” Alexei Miller said during an end-of-year conference on Dec. 28 as tensions soar between Russia and the West.

Miller noted a “total change in the energy markets” driven by the consequences of Western sanctions on Moscow in response to President Vladimir Putin’s decision to send troops to Ukraine.

He insisted, however, that Gazprom continues to operate in a “very well-coordinated” manner.In 2021, Russia was the largest gas supplier for the 27 countries of the European Union.     

After the start of the Ukraine conflict, the bloc drastically reduced its imports of Russian natural gas as it seeks to cut its reliance on Moscow’s energy.

Gazprom accounts for 11 percent of the global natural gas production and has the largest gas reserves in the world.

The loss of its currents buyers has led Russia to seek alternative markets, particularly in Asia.     

Miller also welcomed last week’s launch of the Kovykta gas field in Siberia, which would significantly raise exports to China.     

“The Power of Siberia gas pipeline is now in operation throughout its entire length, more than 3,000 kilometers,” Miller said.

Meanwhile, an offshore natural gas terminal arrived in Finland as part of the country’s efforts to replace Russian supplies after Moscow stopped deliveries, the Finnish gas grid operator said on Dec. 28.

Almost as long as three football fields, the Exemplar vessel, which has arrived in Inkoo port in southern Finland, will allow the country to turn liquefied natural gas (LNG) imported from other countries back into its gas form.