Lack Of Supply Not Reason For High Gas Prices In Europe - Russia's Novak

MOSCOW (Pakistan Point News / Sputnik - 15th October, 2021) Gas prices are high in Europe because of low storage levels and not because of a lack of supply, Russian Deputy Prime Minster Alexander Novak said on Thursday.

"Today the European market is fully provided with gas, because the supply of imports in general, plus our own production, ensure the domestic consumption of the European market. At the same time, even partially gas is pumped into underground gas storages, that is, there is no shortage of gas," Novak told the business FM news agency at the Russian Energy Week event.

The Russian official added that the problem is related to the fact that "the occupancy of gas storages is at the minimum level over the past five years, that is, approximately 74%, while this percentage is usually higher - 85-90%."

"This, of course, raises concerns among market participants, there are risks, as a result, as usual, the market reacts, prices rise," the deputy prime minister said, adding that Russia's Gazprom will increase production capacity if European partners increase the volume of long-term contracts.