Russian Natural Gas Reserves Could Last for a Century To Ensure Leadership

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Gazprom stated that Russian natural gas reserves could power the country for a century, as natural gas is becoming more important than ever.

Gazprom has announced that Russian natural gas reserves are abundant and estimate at least one hundred years of continuous supply. The northern Yamal Peninsula area is crucial to Russia's energy supremacy.

Gas Reserves Crucial Geopolitical Asset for Moscow

Alexey Miller, CEO of a state-owned gas provider, who spoke at the International Business Congress last Wednesday, remarked that vast gas reserves that could last for at least a century, reported RT.

Miller added that a few of the firm's gas fields will still produce gas even in 2120. The chief executive of the colossal firm attributed such an optimistic forecast to the advancement of massive resources in Russia's northern Yamal Peninsula.

In addition, the energy firm is in the process of preparing to launch the Kharasavey gas field and has started developing the deep deposits of the Bovanenkovo field. Russian natural gas reserves are estimated to be 48 trillion cubic meters or about one-quarter of the total.

When the company published its record profits and dividend payouts to stockholders, the Russian energy firm's stock increased by 31% last Wednesday to 267.25 rubles for every share (just over $4.43) on the Moscow Exchange, noted the Press United.

The Russian-based energy firm Gazprom disclosed that its board of directors had suggested a 51.03 Russian rubles ($0.85) dividend for every ordinary share in the first half of 2022.

Moreover, despite restrictions and an adverse external environment, the energy group reported record IFRS revenues and net income in the first half of 2022 while reducing their budget deficit and influence to a bare minimum.

In a remark, the deputy chief executive, Famil Sadygov, made it clear after adjustments that the basis for dividend payments had reached 2.4 trillion rubles (nearly $40 billion).

He also noted that the firm would adhere to the payout policy that envisions at least 50% of adjusted net profit as dividends.

The state-owned company's board of directors preferred not to pay dividends based on last year's income for June, and it was the first occasion a yearly payout was skipped from 1998.

Inflation Hits EU Country

Belgian inflation rose to 9.94% in August, falling just short of the 1976 record of 9.96%, based on the data from the nation's Statbel statistics agency published on Tuesday, citing News TV Global.

Experts associate the increase with higher energy prices, making up about half of total inflation.

To date, energy inflation is now at 49.81%, from 49.11% last month and 55.99% throughout June. Power generation is at 57.2% due to the energy crunch brought about by fewer gas deliveries. Gas supplies are at 106.9%, a steep rise compared to August a year earlier.

Domestic heating oil prices have risen by 52.6% in a year, as mentioned by the source's 12-month rolling average. People pay more for food costs by an increase of 9.71%, but it only accounts for 1.92% of general inflation. Other than power, the most valuable commodities are bread and cereals, sweets, meat, liquor, products for personal care, and hotel services.

With the Russian natural gas reserves available, Gazprom will ensure a century or more to boost Russia's leadership. But the Ukraine conflict has not stopped its trade and gives Moscow leverage when needed. Countries like Belgium suffer the current energy crunch, which is most unfortunate.