Gazprom increases exports to non-CIS countries 6% in 2011
MOSCOW. June 8 (Interfax) - Russian gas giant Gazprom Group increased its exports of gas to non-CIS countries by 6% to 156.6 billion cubic meters in 2011, the company said in its annual financial results.
Total gas consumption in Europe decreased by over 9% to 551 bcm in 2011 largely because of weather conditions such as the warm winter and cold summer in the majority of European countries.
Agreements were reached in 2011 for adapting delivery terms with Edison, SinergieItaliane, GDF SUEZ, WIEH, Wingas and SPP. In accordance with these agreements, contract price formulas were modified with petroleum product indexation, Gazprom said.
End consumers in Europe received 3.7 bcm in 2011. Total deliveries of gas to end consumers came to 4.7 bcm in 2010.
Gazprom Group delivered 265.3 bcm of gas to Russian consumers in 2011, up 1.2% from 2010. Total consumption of gas on the Russian market came to 473 bcm last year.
Total supply of liquefied natural gas by Gazprom Global LNG and Gazprom Marketing and Trading Singapore came to 2.3 million tonnes, 960,000 tonnes of which was LNG produced at the Sakhalin-2 project. Total LNG supply in 2010 came to 1.82 million tonnes, including 1.6 million tonnes of Sakhalin-2 LNG.
Gazprom said that the traditional exporters of pipeline gas on the European market reduced total deliveries. For instance, supply from Libya, according to preliminary estimates, decreased by 7.8 bcm (by 75.8%) and from Algeria, by 5.2 bcm (down 9.1%). Supplies from Libya were halted between March and October 2011. Later, supply through the GreenStream gas pipeline to Italy was restarted but not at full capacity. In addition, gas production in European countries decreased. According to preliminary figures, this production decreased 7.4% to 288 bcm.
The decrease in European gas production was the result of declining reserves and increasing competition on the market. For instance, with lower prices on the market, the main producers found it more profitable to import gas instead of produce it in order to meet their delivery obligations. LNG producers in Qatar and Nigeria increased total exports to Europe.