• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 8 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 2 hours EU to Splash Billions on Battery Factories
  • 6 hours U.S. Shale Oil Debt: Deep the Denial
  • 14 hours The Balkans Are Coming Apart at the Seams Again
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 hour The Dirt on Clean Electric Cars
  • 21 mins Owning stocks long-term low risk?
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 15 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 10 Incredible Facts about U.S. LNG
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects

Gazprom Set to Reduce Price of Natural Gas Sent to Europe

Demand for natural gas in Europe has fallen this year as the economic downturn has forced consumers to cut back on expenditures. This desire to reduce expenses has led many nations to confront Gazprom (GZPM), complaining of the high prices that it charges for its gas, prices that are way above the average price on the spot market.

Gazprom is the largest supplier of natural gas to Europe, providing around a third of all gas to the market. European sales account for about 80% of Gazprom’s income, which in turn provides a large portion of the Kremlin’s yearly revenues, and so Gazprom is keen to defend its dominant position in Europe.

With this in mind, the state-owned energy company has bowed to pressure from customers and competitors and, according to a source from within the company, will cut its long-term contract prices for next year down to levels that are comparable with the general spot market prices.

Related Article: UK Lifts Fracking Ban, Now What?

Gazprom is set to sell its gas at around $370 per 1,000 cubic metres, compared with the price of more than $400 which it has been charging this year.

A gas trader from Germany suggested that the new decision “puts Russian contracts into the money for summer, so they should export at top (capacity).”

As a result of the drop in price, Gazprom is expecting exports to increase from just over 140 billion cubic metres this year, to 152 billion cubic metres next year.

By. Joao Peixe of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News