World Water Crisis (LIFE)

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Gazprom scorns shale gas as 'danger to drinking water'
Telegraph.co.uk
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7199259/Gazprom-scorns-shale-gas-as-danger-to-drinking-water.html
By Rowena Mason, City Reporter (Energy)
Published: 8:10PM GMT 09 Feb 2010

Russia's Gazprom has attacked the idea that huge new US reserves of shale gas will harm its dominance as the world's biggest producer, warning the energy source is environmentally unsound

The state monopoly has already questioned whether shale gas is economically viable to extract and dismissed it as a threat to its conventional resources.

Alexander Medvedev, head of exports at Gazprom, said he thought it "unimaginable" that Europe would allow shale gas to be developed. He said Gazprom believes the US Environmental Protection Agency will raise concerns about its potential contamination of drinking water in a forthcoming report.
Russian media has reported that Gazprom is deeply worried about the emergence of shale gas, which has been called a "game-changer" by BP boss Tony Hayward.

The US is now importing much less gas, as companies are using new extraction technology to fracture rocks.

The Russian state-owned company last week said it was delaying a decision on whether to press ahead with the $15bn (£9.6bn) first phase of developing its Shtokman gas field, meaning production could be postponed by three years. This is in response to the supply glut that has been depressing prices, caused by the emergence of shale and by weak demand.

Mr Medvedev also dampened rumours that Gazprom could buy British Gas owner Centrica, saying there were no attractive targets in the UK market. "But if we do finally decide to buy Centrica, the first people to know would be management, shareholders and the Takeover Panel," he said.

Gazprom intends to expand in Europe and the US through organic growth, he said.