Europe is increasing imports of Russian gas even as demand on the continent is falling, reported Reuters.
While markets for natural gas have been steadily increasing around the world, Oil & Gas 360 recently released a report showing that the European market for natural gas has actually been contracting, down 22% since 2010.
The current higher import rates of Russian gas are attributed to lower prices for the fuel supplied by Gazprom. Natural gas prices are pegged to the price of oil, albeit a six-month lag. As oil prices have fallen steeply over the last year, gas is following the trend.
Russian giant Gazprom is being bolstered by the sales, good news for a company facing one of its worst years on record. Much of Gazprom’s problems have been blamed on a lack of investment in the upstream sector.