LUKOIL says reducing oil exports to Europe is inevitable

Oil&Gas Materials 24 November 2020 15:51 (UTC +04:00)
LUKOIL says reducing oil exports to Europe is inevitable

BAKU, Azerbaijan, Nov.24

By Leman Zeynalova – Trend:

Reducing oil exports to Europe is inevitable, Trend quoted Vice President for Strategic Development of PJSC LUKOIL Leonid Fedun as saying.

European oil market is set to shrink and according to EU forecasts, it may halve by 2040, Fedun told Russian media.

As for gas, he noted that exports will go down, but not so sharp as oil exports as long as gas prices are low.

“Europe is primarily getting rid of coal. As the EU plans to introduce the standard of 5% hydrogen content in methane, the consumption of traditional gas may decrease by 2040,” noted Fedun.

When coming to LUKOIL, he said the company produces almost 400 MW of electricity from renewables and is the second company in Russia for the volume of hydropower production.

“We plan to expand our wind farm in Romania and other countries. But we don’t plan to increase the share of renewables in our electricity generation. We are looking to capture CO2 and extract and refine oil with a minimal carbon footprint. At the same time, one of the options for the development of oil companies is switching to hydrogen,” he added.

LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world accounting around 2 percent of the world's oil production and around 1% of the proved hydrocarbon reserves.


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