UPDATE: Germany’s E.ON, Gazprom agree to adjust long-term gas price

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MOSCOW, Mar 29 (PRIME) -- Uniper, a unit of Germany’s E.ON, and Gazprom Export, a branch of Russian gas giant Gazprom, have signed an agreement to adjust gas prices under current long-term export contracts on March 24, Gazprom Export said in a statement Tuesday.

“On March 24 in Moscow, Deputy CEO Alexander Medvedev, CEO of Gazprom Export Yelena Burmistrova, Uniper CEO Klaus Schafer and Senior Vice President of Uniper Uwe Fip signed an agreement between Gazprom Export and Uniper to adapt pricing conditions of existing contracts for supplies of natural gas in coming years,” the company said.

“The sides have also agreed to cancel an arbitration dispute. The agreements will allow the sides to continue joint work for long-term delivery of gas to German and European markets.”

E.ON said in a statement that the agreement will allow the company to raise its forecast for earnings before interest, taxes, depreciation and amortization (EBITDA) for 2016 to 6.4–6.9 billion euros from 6–6.5 billion euros, and also improve the forecast for net profit to 1.5–1.9 billion euros from 1.2–1.6 billion euros.

In April 2014, Gazprom Export received a notification of an arbitration dispute initiated by E.ON Global Commodities SE seeking revision of contracted gas prices. In March 2015, E.ON filed a new complaint about short-received supplies of gas in September 2014–March 2015. Hearings of the case of E.ON Global Commodities SE were to be held in April 2016.

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