Russian gas giant Novatek is negotiating with Asian customers new long-term contracts on supplies of liquefied natural gas (LNG) although soaring energy prices have slowed the progress of talks, CEO Leonid Mikhelson said on Monday
BELOKAMENKA (Pakistan Point News / Sputnik - 18th October, 2021) Russian gas giant Novatek is negotiating with Asian customers new long-term contracts on supplies of liquefied natural gas (LNG) although soaring energy prices have slowed the progress of talks, CEO Leonid Mikhelson said on Monday.
"We are negotiating purchases with Asia and have signed several contracts. Now, however, everyone has frozen, of course, given these $32 per MMBtu (metric million British thermal unit). But I think we will continue the dialogue, and naturally, not about $32. We will consider this," Mikhelson told a briefing.
Commenting on rising prices, in particular in Europe, he noted that the main problem was the lack of a sufficient number of long-term contracts, which resulted in the European market not having enough gas at the cusp of winter.
However, despite the current situation with gas shortages, no customer from Europe applied to Novatek, Mikhelson noted.
Countries across the world and Europe, in particular, have seen a spike in natural gas prices since early 2021 due to demand outpacing supply amid an economic recovery after months of COVID-19 restrictions. Asia's shift from coal to gas only complicated the situation, creating additional competition among buyers.
