Gazprom chief: Gas pipeline network in cities only viable solution

A network of gas pipeline in cities is the only viable solution to the cooking gas crisis that happened in Jeddah recently, according to Victor Zubkov, chairman of the board of directors of Gazprom in Russia.
In an exclusive interview, Zubkov, who is also the Russian president’s special representative for cooperation with Gas Exporting Countries Forum, told Arab News after his meeting with the Ministry of Oil that the price is expected to be higher than its current price. He said: "I cannot disclose the rate right now but it will be reasonable."
To overcome the cooking gas problem in Jeddah, there is a need to build gas pipelines’ network in place of cylinders, which have become outdated. “A better way is to build network in order to supply much accessible gas available at their homes and accommodation,” he said.
The top Russian official was in the capital last Tuesday to address the International Energy Forum (IEF) at its headquarters in the Kingdom. He also had a meeting with the Ministry of Oil.
He said 90 percent of the people in Russia use the gasification network. With the pipeline network, gas will come directly to apartments and houses requiring the people to pay only the monthly gas bill.
Zubkov said Russia and Saudi Arabia need more cooperation not only in the energy sector but also the agricultural one. “While there are big efforts for water desalination here and such water has no use for agriculture, Russia can supply wheat and many other agricultural products. In this case Saudi Arabia can invest in Russia's farm sector and get quality products."
"Saudi people, especially businessmen, need sufficient knowledge about Russia. As such, we need to have many meetings and, maybe, hold a business forum as well. Russia is a stable and dependable partner. Of course, we guarantee that we will implement all our proposals," he added.
During his meeting with Saudi officials, Zubkov briefed them on opportunities in Russia's energy sector as well as on their short- and long-range plans that include stability and sustainable supply for the European market and the Asian Pacific market as well.
“Of course, we are all concerned about oil price as it affects us all because many of our long-term contracts are connected with the oil price. We want the price to be higher than what it is now,” he said.
Zubkov added: "It is not only because our budgeting is based on the oil price but also because a lot of investment plans are now doubtful not only inside Russia but also in different countries as well. The negative impact on this will be felt by consumers as they outnumber the producers by over 10 times."
According to him, the price should not be either too low or too high. It should reflect the situation in producing and transporting expenses. It should be stable in the interest of economy and, of course, to also avoid creating social unrest.
"Our message to the Saudi government is price should be higher than the current level. And, of course, I will not disclose here the new figure that we have discussed," he said.