Gazprom sees 2016 LNG exports flat on year at 3.56 mln tns

MOSCOW, Oct 26 (PRIME) -- Russian gas giant Gazprom forecasts its exports of liquefied natural gas (LNG) to remain flat on the year in 2016 at 3.56 million tonnes, Deputy CEO Alexander Medvedev told the company’s corporate magazine in the interview published on Wednesday.

“We plan that this year our LNG supplies will be comparable to last year. I will remind you that the Gazprom group exported 2.56 million tonnes of liquefied natural gas to the world markets in 2015,” he said, adding that competition at the LNG markets is growing but Gazprom is ready to work in new market conditions.

“We are developing our relations with our traditional partners in Japan, South Korea, Taiwan actively but also with customers on the developing markets of Southeast Asia, the Middle East, and other regions.”

He said that Gazprom’s natural gas exports to Turkey may fall by 9.2% to 24.5 billion cubic meters in 2016, while in 2017 the exports may grow to 25.1 billion cubic meters. But Gazprom does not operate on the market of end consumers in the country.

“We only supply gas to the border, where it is sent to local companies, including gas distributors, and work with end consumers is in their competence. We are only interested in participation in Turkish power generation projects under certain conditions. We would be interested in studying options provided by the business. I don’t rule out a future possibility of purchasing existing projects or construction of new ones,” he said.

The company’s share on the European gas market will grow slightly, but steadily in the future, as growth of gas exports to Europe is connected with an increase of demand in the region as gas returns to power generation, and to a continuous contraction of local production, he said.

“Regarding growth of Gazprom’s exports, the main reason here is the price factor. Our gas is competitive on the market, partners understand that and take off volumes under long-term contracts actively,” he said.

He confirmed the company plans to set a record of gas exports to non-CIS states in 2016.

“The only issue here is whether we will be able to top the 170 billion cubic meter mark. We expect an average price for gas at U.S. $165–170 per 1,000 cubic meters in the year,” he added.

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