Russian Gazprom ups October exports to Europe by 41% to 14.7 Bcm
Russian state-owned Gazprom said Monday that its exports to Europe in October enhanced by 41.4% year on year to 14.7 Bcm, according to expectations that European customers would certainly increase acquisitions in the 2nd half of the year, as the influence of reduced oil rates strikes gas costs under lasting contracts.
edta to on from rises of 22.4% in July, 23.1% in August and 24.2% in September, Gazprom said.
In September, Gazprom elevated quotes for its exports to Europe in 2015 to 158 Bcm on the back of a strong 2nd quarter. At first Gazprom expected to deliver 152-153 Bcm to Europe this year based on weaker demand in the initial quarter, when acquisitions in those markets fell 20% year-on-year amid assumptions of future reduced costs for Russian gas under long-lasting agreements.
Gazprom's long-lasting agreements with European consumers normally include a 6-9 month lag in oil rates constructed right into the pricing mechanism, making gas supplied under these agreements substantially cheaper in H2 2015.
Gazprom authorities have estimated that its gas cost will balance Eur195.9/ 1,000 cu m in the upcoming winter. This is the average rate for all deliveries, including under lasting, oil-indexed agreements and also spot markets.
UKRAINE SUPPLIES
Gazprom also said Monday that exports to Ukraine have decreased threefold from November 1, resembling comments made by Ukrainian officials recently.
"From the beginning of November Ukraine decreased intake of Russian gas practically threefold, due to Naftogaz Ukrayiny's economic troubles. Staying prepaid gas is sufficient for just 5 days," Gazprom claimed.
Recently Naftogaz Ukrayiny head Andriy Kobolev said Ukraine would considerably decrease its Russian gas imports starting on November 1 due to the fact that European gas is presently more affordable.
Ukraine was buying Russian gas at about $227/1,000 cu m in October, yet firmly insisted the rate requires to find down in order to be attractive and that future purchases this winter months would rely on rates for Russian gas.
Kobolev additionally stated recently that Ukraine may do without Russian gas imports totally in 2016, counting on European imports. Throughout export disturbances for 6 months in 2014 as well as for 3 months in 2015 Ukraine changed Russian volumes with supplies from Europe.