Energy giant Centrica, owner of British Gas, has warned that Europe will continue to be dependent on gas from Russia for many years yet.
The company’s chairman told shareholders that it is “unrealistic to think that Russian gas is going to be replaced in the near-term”.
Since the crisis in the Ukraine escalated last year, European leaders have been trying to find alternative sources to reduce reliance on imports from Russia.
Centrica’s chief executive backed that sentiment, adding “Russia supplies... about a third of Europe's gas. You can't switch that off easily without huge consequence.” He said the US would not to replace the volume needed.
He noted, however, that Russia had been a "a reliable supplier of gas all the way through the Cold War" and that it needed European demand.
"Russia realises that plays a very important part in Russia's own future and there's as much value in this co-dependency as there is potential threat," he said.
Both men were speaking at Centrica's Annual General Meeting, where 33% of shareholders voted against Centica’s executive pay report and investors complained the board was “paying itself large sums of money for cutting our dividend".
The CEO also reported that British households consumed 10% more gas in the first three months of this year compared to the exceptionally cold spell in 2014.
The increase will help British Gas profits, but overall a loss is expected during the severe drop in oil prices.
