Gas pipeline vital for Europe, energy giant says

French energy giant Engie warned on Tuesday that a conflict between Russia and Ukraine would be "bad news" for Europe's gas supplies and defended the controversial Nord Stream 2 pipeline as being "in all our interests".

Engie is one of five European partners in the massive Russian pipeline running under the Baltic Sea to Germany. The pipeline, which has been completed but is still awaiting regulatory approval in Germany, has become a key bargaining chip in recent Ukraine tensions.

At a news conference after Engie released its annual earnings, the group's chief executive Catherine Mac-Gregor stressed the importance of Russian gas for Europe.

"Russian gas is a major component in the European gas mix. Therefore, we view a potential conflict between Russia and Ukraine as really bad news," she said.

MacGregor said that the levels of France's gas stocks meant it could face "very short-term" shortages.

But, she said, "in the medium- or long-term we need Russian gas" to build up gas stocks again.

She said the Nord Stream 2 pipeline, which circumvents Ukraine and is set to double Russian gas supplies to Germany, was "an important project" for Europe's gas supplies.

"It's in all our interests," she said.

The world's biggest energy firms have posted huge profits for 2021 when oil and gas prices surged due to geopolitical tensions and growing demand after countries emerged from COVID-19 lockdowns.

Engie said its future growth would be "mainly driven" by its investment in renewable energies as well as higher results from its Energy Solutions unit, which provides support to cities transitioning to carbon neutrality.

Agencies Via Xinhua