Gazprom reduces export of gas to Europe by 17% in the first half of the year

In the first half of the year Gazprom Plc. reduced the export of gas to Europe by 17% - to 71.93 billion cubic metres (from 86.6 billion cubic metres in the first half of 2011), is said in the company’s RAS report. The data about the first half of 2011 was specified in the company’s IAS report for that period.

Exports to Western Europe made up 54.87 billion cubic metres. 17.13 billion cubic metres of gas were delivered to Germany, 14 billion cubic metres – to Turkey and 6.62 billion cubic metres to Italy. Exports to Central Europe made up 17.05 billion cubic metres, the largest volume was delivered to Poland – 5.03 billion cubic metres.

Previously the Head of Gazprom, Aleksey Miller reported, in 2012 gas export to Europe would make up 150 billion cubic metres.

In the first half of the year the sales to the countries of the near abroad made up 32.46 billion cubic metres: 15.92 billion cubic metres were sold to Ukraine, 10.44 billion cubic metres – to Byelorussia. Thus, total export of Gazprom made up 104.4 billion cubic metres within the reported period.

Ministry of Energy reported, in the first half of 2012 Gazprom reduced gas extraction by 5.9% - to 252.761 billion cubic metres. Export of Russian gas reduced by 17.5% - to 96.279 billion cubic metres, the department noted.

It is also said in the report of Gazprom that Gazprom Export LLC is holding commercial consultations with RWE Transgas, Shell Energy Europe, Centrex, EGL, GasTerra, Dong and PGNiG.

Previously several European consumers asked Gazprom export to reconsider the contracted price in the framework of the long-term contracts, specifying this by the changes at the world gas market (excessive gas supply, considerable difference between the spot prices and the prices in the long-term contracts). In 2010 the arrangements with the following companies were reached: E.On Ruhrgas, Wintershall Erdgas Handelshaus, Wingas, GDF Suez, ENI, EGL, Sinergie Italiane, ЕРГ, GWH Gashandel, Econgas, Centrex and GasTerra.

In 2011 the prices were reconsidered with the following companies: PremiumGaz, Edisson (deliveries via Promgaz JV), Sinergie Italiane, GDF Suez, Wintershall Erdgas Handelshaus, Wingas, SPP. In the beginning of January 2012 the agreement about unscheduled reconsideration of the contracted price with Econgas was signed, in March 2012 the arrangement with ENI was reached, in May – with GWH Gashandel, in July - with E.On Ruhrgas.

Gazprom is the gas transport and gas extraction monopoly in the RF. The authorized capital of the concern makes up 118,367,564.5 thousand rubles and is divided into 23,673,512.9 thousand ordinary shares with 5 rubles nominal. More than 50% of the company’s shares belong to the state. In 2011 Gazprom increased gas extraction by 1% - to 513 billion cubic metres, export to far-abroad countries – by 8.1% - to 150 billion cubic metres. In the first half of 2012 RAS profit of Gazprom reduced by 22% compared to the first half of 2011 and made up 381.6 billion rubles. The proceeds increased by 1.4% - from 1.850 trillion rubles to 1.825 trillion rubles.

Source: http://www.oilru.com/news/331448/

Translated by Alexandra Utyasheva