Gazprom still sees gas exports to Europe at 166–167 bcm in 2020

MOSCOW, Jul 14 (PRIME) -- Russian gas giant Gazprom maintains its forecast for gas exports to Europe in 2020 at 166–167 billion cubic meters with an average price of U.S. $133 per 1,000 cubic meters, Andrei Zotov, a department director at Gazprom Export, said Tuesday during a conference call.

“Taking into account the information that we have on the basis of the results of two quarters and on the assessment of the possibilities of our deliveries under contracts and additional sales in the third and fourth quarters, we are now concluding that it is not necessary to revise the figures that were announced based on the results of the first quarter, given the great potential of the fourth quarter, which we expect both in terms of prices that are formed and in terms of expected selections for our contracts,” Zotov said.

Alexander Ivannikov, head of the financial department at Gazprom, said the company believes that the low point of the decline of spot prices of gas in Europe has been passed, and the recovery of the gas market will start in the fourth quarter of 2020.

“Speaking about spot prices at European hubs, there are grounds to believe that we have already passed the low point. A more stable market balancing can be expected starting from the fourth quarter, due to the seasonal factor and high filling of gas storage volumes,” Ivannikov said.

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