International Gas Union boss unfazed by European crisis

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.

[Platts]