Russia’s Gazprom Plans Gas Auction for Northwest Europe

Russia’s Gazprom Plans Gas Auction for Northwest Europe

Russia’s Gazprom is planning a natural gas auction for northwest Europe and in June will announce the volumes and conditions of the auction, its Deputy Chief Executive said according to Reuters. Gazprom’s Alexander Medvedev added that maybe Poland could buy gas that way from Gazprom.

As he explained, Gazprom expects to deliver 165bm³ to Europe this year, up from last year’s 158.6b m³. Western European countries accounted for about 82% of the company’s exports from Russia, while central European states took 18%, Natural Gas Europe reported. During a press conference he said that “this a very realistic figure, but I do not exclude the possibility of it going even higher if the autumn and winter are average or even mild.”

He said export figures for the January-May period were already 16% above 2015 figures year-on-year. Several European companies with contracts with Gazprom, such as Italian ENI, have agreed to maximise their offtakes this year, which will probably lower hub prices, in the absence of an equal rise in demand.

In addition, it was recently reported that Gazprom’s income from exports fell 29% in the Q1 of 2016 year-on-year, despite selling more gas, and a company official said there was almost no benefit now from exports versus sales at home.


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