Russian gas export monopoly Gazprom said on Monday it was ready to boost supplies to Europe under a proposal by Prime Minister Vladimir Putin that would allow Europe-bound liquefied gas to be rerouted to Japan. Last weekend Putin proposed raising Russian gas exports to Europe by 60 million cubic metres per day to allow higher flows of liquefied natural gas to Japan, which is battling a nuclear power crisis after a huge March 11 earthquake.
Analysts questioned, however, whether more volumes were needed in Europe after Gazprom had already stepped in to cover the loss of 2 percent of Europe's supply caused by the conflict in Libya. "Gazprom has enough resources to accomplish Putin's proposal on a swap operation in Europe," a spokesman for Gazprom Export told Reuters.
"Gazprom increases gas deliveries through pipelines to Europe, so some LNG cargoes directed to Europe could go to Japan. If additional need of Japan will be confirmed our representative will immediately contact our European partners." Russia is the world's largest natural gas producer but the lion's share of its exports is pumped by pipeline to the European Union and Turkey, to which it exported 139 billion cubic metres (bcm) of gas last year.
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