Europe violates competition by creating perks for expensive US natural gas – Gazprom

The European Union uses unfair competition methods in regulating the gas market, said Gazprom’s Deputy Chairman of the Management Committee, Aleksandr Medvedev.

“An attempt to change the competitive environment under political pretexts, to create unequal conditions of competition, is very dangerous. It will lead to economic consequences,” Medvedev warned, speaking at the St. Petersburg International Gas Forum.

Gazprom’s top manager was referring to Lithuania, which is giving out special perks and benefits to have infrastructure for liquefied natural gas (LNG) from the United States.

Russia has repeatedly proved that pipeline gas from Russia to Europe is cheaper and safer than LNG shipments from the US. With Lithuania wanting US gas so much, the higher costs are being paid by end consumer, Medvedev said.

The Lithuanian Energy Ministry earlier said that it needs an LNG terminal to diversify its gas purchases and prevent the Russian energy giant from increasing prices.

“It is estimated that if not for the LNG terminal in Lithuania, Gazprom could apply an additional price premium of 11% to 20% on gas sold in the region,” it said in April.

Russian authorities have said that Washington has been trying to prevent the construction of the Nord Stream 2 gas pipeline, from Russia to Germany, in an attempt to force-feed American LNG to Europe.

Germany, which wants the pipeline to be implemented because of its financial attractiveness, has been blasted by the Trump administration for sticking to the project.