Calls for the increased use of natural gas for electricity generation / “Nord Stream is the best anti-freeze agent for Europe”

Berlin. Dr. Rainer Seele, Chairman of the Board of Executive Directors of Wintershall Holding AG, has spoken out in favor of the increased use of natural gas for electricity generation at the annual congress “Energiewirtschaft 2010” (Energy Industry 2010) in Berlin. Dr. Seele underlined that with its excellent CO2 values, gas was the only fossil fuel with a climate-friendly future and in demand as a natural partner of renewable energies. “It is natural gas that makes green energy reliable in the first place. The sun and the wind cannot be stored, unlike natural gas. Hence, natural gas can balance out fluctuations in the production of renewable energies,” Dr. Seele explained. “It is time that policy-makers recognize, accept and promote natural gas as an environmentally friendly energy and a partner of renewable energies.” Especially at the moment, the general conditions for ensuring a cheap and reliable supply of gas long-term in the power plant sector were good. The Wintershall CEO believes that the increased use of natural gas in this sector will provide the future growth in consumption. In this context Dr. Seele called for a sustainable European energy policy from the new EU Commission in Brussels.

Europe, however, was holding back in a gentleman-like manner while the rest of the world competes for energy reserves, merely getting excited about short-term price cuts triggered by the economic downturn, the Chairman of Germany’s largest international producer of crude oil and natural gas bemoaned. “But the delight about Europe’s oversupply of cheap gas will soon come to an end when confronted with the sobering reality. The world’s population will rise to more than 8 billion by 2030 and global energy consumption is forecast to increase 40 percent,” Dr. Seele explained, adding that, “two thirds of energy demand will continue to be met by oil, natural gas and coal worldwide.”

Supply security begins at the source

"China and India have understood this and are securing raw materials reserves round the world worth billions”, the 49-year-old energy manager said at the conference in Berlin. The Wintershall CEO is concerned about Europe’s supply of natural gas in light of the EU’s passive stance. The realization that energy policy is also a matter of protecting European interests did not seem to have dawned yet in Europe. “In Europe we cannot just sit back and watch as Russia and China grow closer together. Rather, we have to be actively investing in a European-Russian partnership – economically, financially and politically,” Dr. Seele underlined. “At the moment we are still in the fortunate position of being able to talk about supply security for Germany and Europe thanks to longterm supply agreements – not least because companies like Wintershall are directly involved in the production of oil and gas in Russia.” The company produces natural gas in Siberia, amongst other places, and is also a partner of the Nord Stream Baltic Sea pipeline project.

Expanding the partnership with Russia

“Nord Stream will secure primary energy imports from Russia to Europe. The 55 billion cubic meters of natural gas that will flow through the Baltic Sea pipeline to Europe equal the capacity of 55 coal-fired power plants or 20 new nuclear power plants,” the Wintershall CEO explained. “In view of the political uncertainties and internal quarrels in the transit states, and with political temperatures below freezing, Nord Stream is the best anti-freeze agent for Europe,” Dr. Seele said. Despite the economic crisis, seven billion euros were being invested in the Baltic Sea pipeline, and an additional three billion euros in the connecting pipelines to the European gas pipeline network. “And we are doing so without the aid of state funds or economic stimulus programs. At the same time we expect a signal from the policy-makers that these commercial investments in the partnership with Russia carry political support too.” In the meantime, Seele wants to expand his company’s activities in Russia and continue to deepen the partnership with Gazprom. “Successful joint projects such as Achimgaz and Yuzhno Russkoye, which deliver more than 30 billion cubic meters of natural gas a year together, have strengthened our partnership with the world’s largest producer of natural gas. Now we want to build on this.”