18 Jun 2010 16:25

Gazprom to return to pre-crisis price terms for gas supplies to Europe by 2013

ST. PETERSBURG. June 18 (Interfax) - OJSC Gazprom will return to pre-crisis price terms for gas deliveries to Europe no later than 2013, Alexander Medvedev, the head of Gazprom Export and a member of Gazprom's managing committee, told journalists on the sidelines of the St. Petersburg Economic Forum.

He stressed that "a systemic review of the terms for supplying gas to Europe has not happened." "We have simply adapted our long-term contracts to crisis conditions. Changes have been introduced. The contracts will return to previous terms no later than 2013," Medvedev added.

Over the last two years, oversupply of liquefied natural gas (LNG) has appeared owing to lack of demand on the U.S. market. As a result, spot prices on the European market have been much lower than the prices included in Gazprom's long-term contracts. Gazprom, having lost a portion of the market, has been forced to introduce changes to a number of long-term contracts with several European consumers.

Miller said that the difference between long-term and spot prices for gas in Europe would hold until 2012 at the latest.