“Maybe the EC is not completely realistic, maybe gas production will decline and our imports will grow. I still believe that the EU declaration regarding consumption is a bit too harsh,” Dr. Thierry Bros has told Sputnik.
“In terms of demand and supply, I don’t think this [could lead] to any major change,” he noted.
When asked which side would suffer the most if Nord Stream 2 does not happen, Dr. Bros said that even though Russian gas is the least costly to produce and ship to Europe, pricing in Europe is done on a market basis.
“The price in Europe is way above the cost of producing and shipping, that’s why Gazprom is so highly profitable. [However], Russian gas accounts for 34 percent of [European consumption] and if you are saying what we in Europe would do without Russian gas, I believe that if you take out Russia gas prices will skyrocket and we will have blackouts,” he continued.
He added that some European nations, above all Poland, are opposed to the Nord Stream 2 project, arguing that Gazprom now has 34 percent of the European market and if the Nord Stream 2 project is implemented, Russia’s market share will increase and it will be able to push prices up.
“This is the risk I believe some countries fear, and this is coming from countries, which are more on the east side of Europe.”
When queried why the European Commission is easing its requirements to Ukraine, Dr. Bros said that the EC wants the Ukrainian transit to be kept because the transit of Russian gas is benefiting the Ukrainian economy.
Earlier, vice president of the European Commission in charge of Energy Union, Marosh Sefcovic, stated that the EC hoped to obtain a mandate for negotiating with Russia on the Nord Stream 2 project.