Europe Uses US LNG Terminals as Backup for Pipeline Gas System - ENGIE

© Photo : Nord Stream 2Pipes are loaded onto a vessel in the northern German port of Mukran for transshipment to a storage yard
Pipes are loaded onto a vessel in the northern German port of Mukran for transshipment to a storage yard - Sputnik International
BARCELONA (Sputnik) - Only a small proportion of gas consumed in Europe comes from liquefied natural gas (LNG) terminals, which are used as a backup for a pipeline gas system, France's ENGIE Executive Vice President Pierre Chareyre said on Wednesday.

"At the moment, the LNG is a very small part of gas consumption in Europe. Most of the gas is coming from pipe gas… In fact, LNG terminals are a sort of a back-up system in case there is a problem with a supply of gas through the pipe gas system," Chareyre told reporters.

Chareyre also stressed the importance of having several transit routes in case there is a problem with the transport system in Europe, including a route going through the North Sea and a route in the south "coming from the TurkStream natural gas pipeline."

"We do not plan to participate in TurkStream but it is another supply route. We are selling gas to Italy, so it is important that the south of Europe is well supplied," he stressed.

The TurkStream pipeline is currently under construction and will deliver Russian gas to Turkey, and southern and southeastern Europe.

Russia was the largest supplier of natural gas to the European Union both in 2016 (39.5 percent) and 2017 (37 percent), according to Eurostat.

READ MORE: EU Taxpayers Not Funding Nord Stream 2, Political Tension Surprising — Gazprom

ENGIE as one of the European partners of the Nord Stream 2 pipeline, has already invested half of its financial obligations in the pipeline and is ready to provide the rest in the coming months as the construction company needs it, ENGIE Executive Vice President Pierre Chareyre told Sputnik on Wednesday.

"We have already provided a little less than 500 million in Euros. It’s about half of our commitment, so there is more for it to come. There is a schedule of drawdown as the project company needs it to finance its investments. So it [the second half] will come in the next months," Chareyre said on the sidelines of the Gastech conference in Barcelona.

The Nord Stream 2 pipeline will be completed as initially planned despite potential sanctions by the United States, as the current regulation does not prohibit support of European companies, Pierre Chareyre said.

"The guidance which has been given by the American Administration on the sanctions does not prevent us from supporting Nord Stream, if rules change we will assess our position. For the time being there is no change, as far as I know. Most of the orders have been passed, and I am convinced that whatever happens the pipe will be completed," Chareyre said on the sidelines of the Gastech conference in Barcelona, asked about US President Donald Trump’s pledging on Tuesday not to punish EU companies for participating in the Nord Stream 2.

"Nord Stream is important for the security of supply in Europe, it’s our policy to increase various sources of gas coming into European markets from Russia but also from other places. That’s why we have decided to support Nord Stream 2 through our financing commitment. Nord Stream 2 is moving ahead. And nearly all permits was obtained except one. It’s on time and on schedule. It will be ready as initially planned," he added.

Gazprom Chairman of the Board Alexei Miller visits the ETERNO shop of the Chelyabinsk Pipe-Rolling Plant - Sputnik International
US Energy Secretary Not Ruling Out Sanctions Against Nord Stream 2

Nord Stream-2, which is a joint venture of Russia's Gazprom with France's Engie, Austria's OMV AG, UK-Dutch Royal Dutch Shell, and Germany's Uniper and Wintershall, aims to deliver 55 billion cubic meters of Russian natural gas a year to the European Union across the Baltic Sea to Germany.

An extension of the existing Nord Stream pipeline, Nord Stream 2 will run across the territories of Russia, Finland, Sweden, Denmark and Germany.

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