Gazprom expects gas surplus in Europe to disappear in 2011
MOSCOW. Nov 17 (Interfax) - Gazprom expects the "temporary gas surplus" in Europe to disappear as early as 2011, said Alexander Medvedev, the Russian gas giant's deputy CEO.
Spot market prices and long-term prices, which are pegged to petroleum products, should even out by then, he said.
However Gazprom does not plan to abandon pricing based on oil prices, he said.
The indications today are that demand will recover in 2012, however this is based on data for the first half of 2009 first half of 2009 and could be revised.
Gas consumption could fall 5%-7% in 2009, Medvedev said.
Europe consumed 517 billion cubic meters of gas in 2008, according to Eurogas data.
Medvedev said gas consumption in Europe would rise to 683 bcm in 2020 and 742 bcm in 2030, according to a consensus forecast.