Gazprom concessions to EU consumers unrelated to higher spot sales
MOSCOW. Feb 1 (Interfax) - Gazprom's latest concessions to European consumers in terms of adapting contracts at the end of last year and early this year and unrelated to a higher proportion of spot sales in those contracts, Gazprom Export's Head of Contract Structuring and Price Formation Sergei Komlev said during a conference call.
"There won't be a substantial increase in the share of spot trading in contracts. These talks are unrelated to higher spot," he said.
Taking into account the gas market in Europe and the situation with the economy and energy sector of certain European states, Gazprom Export has adjusted prices for several European buyers that provide around a quarter of Russian gas exports to Western Europe, taking into account the gas market in Europe and the situation with the economy and energy sector of certain European states."
Gazprom Export signed corresponding contracts with the companies GDF Suez (France), Wingas (Germany), SPP (Slovakia), Sinergie Italiane (Italy) and Econgas (Austria).
These companies purchase around 35 billion cubic meters (bcm) of gas per year, which accounts for almost a fourth of all Russian gas exports to Western Europe.
Not one of the listed companies attempted to obtain concessions through an arbitration court - they all preferred the negotiations process. The only exception is SPP, which demanded compensation for losses during the Ukrainian transit crisis two years ago. As a result, a voluntary settlement was reached with the company.
In previous contract reviews, GDF Suez and Wingas ended up with a 16% share of spot in their contract portfolios. SPP, Sinergie Italiane and Econgas got a price discount on the base price of gas.
The buyers have now received discounts on the base price if gas, a source with knowledge of the situation told Interfax.
Komlev said there would "definitely be a retroactive element" to the revised contracts.
He also said that "partners are keen to abandon three-year reviews for shorter cycles."