GAZPROM may not have enough gas to supply Europe over the next decade, the head of the International Energy Agency (IEA) said yesterday. Studies by the IEA concluded that the Russian gas utility was not investing enough in its own resources to ensure continued adequate supplies in coming years.

“We are afraid that Gazprom will not have enough gas to supply even their existing customers and existing contracts. This is our data,” Claude Mandil, the IEA executive director, said at a Reuters energy summit in London. He said that Gazprom disputed the IEA’s data but had declined a request that it participate in a workshop to discuss the issue.

Concern over Gazprom’s output has been mounting in recent years as evidence emerged of the company’s flat indigenous production profile.

While Russia has the world’s largest gas reserves, the giant utility relies on a small number of giant gasfields and has not yet invested in developing new resources in the Arctic.

Gazprom has growing commitments to export gas to Europe. The utility is able to make up the difference between its export commitments and the dwindling output of its ageing giant gasfields in Western Siberia with increased imports from Central Asia.

Gazprom is the monopoly buyer of gas for export from Turkmenistan, which is used to supply the utility’s domestic customers in Siberia, while the Siberian gas is shipped to Europe.

Gazprom’s monopoly over Central Asian gas exports is a deterrent to new investment by those countries, Mr Mandil said. He is urging G8 summit leaders to discuss the creation of a Russian energy regulator to help to avoid a supply crunch.

Explore Economics

• Pre-Budget Report 2008

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive