Gazprom: Third Energy Package Would Reduce Supply

Deputy CEO of Gazprom Alexander Medvedev has said that volume provisions mandated by the Third Energy Package could mean that the company could not supply enough gas to all its European customers.

Mr. Medvedev said that while Gazprom had more than enough gas to supply its European customers, the provisions of the Third Energy Package could stifle supply and prevent the company from fulfilling any country's entire supply needs.

"Should the third energy package be fully implemented in all European countries, we would not be able - even if we have gas - to supply gas in accordance with our long-term contracts with our partners, because they are now trying to take away from us the access to the transport capacity," he told Russian television station Rossiya-24. "These deliveries are carried out in connection with contracts entered into for a long time ago."

Mr. Medvedev said that the provisions could see customers without supply and unable to meet contracted volumes of gas export.

"If the package were in force now, our German customers would be unable to receive gas because we have only been given 50 per cent of the Nord Stream pipeline’s extension capacity," he said. "In my opinion, as well as thinking about the liquid market, we should also consider what we should do with measures stipulated by the Third Energy Package, which threatens to deprive suppliers, both Russia and other exporters, of being able to meet their long-term contractual obligations."

Gazprom is the largest supplier of gas to Europe.