| JRL Home | JRL Simple/Mobile | RSS | Newswire | Archives | JRL Newsletter | Support | About
Old Saint Basil's Cathedral in MoscowJohnson's Russia List title and scenes of Saint Petersburg
Excerpts from the JRL E-Mail Community :: Founded and Edited by David Johnson

Gazprom Expects Record 2011 Export Revenue of $72.4 Billion

Russian Petroleum FacilityFeb. 15 (Bloomberg) -- OAO Gazprom expects 2011 total export revenue to top the 2008 record as natural-gas prices increase and demand for the fuel recovers in Europe.

Gazprom expects total export revenue of $72.4 billion this year, or $2.5 billion more than the record in 2008, Deputy Chief Executive Officer Alexander Medvedev said today in London. That includes $52.8 billion from exports of natural gas outside the Commonwealth of Independent States, he said.

- - Russia's state-owned Gazprom, which expects European gas prices to rise 15 percent this year, plans to boost exports to the region. Sales to Europe are planned at about 152 billion cubic meters of gas this year, compared with 139 billion cubic meters last year, according to a presentation to investors provided to Bloomberg.

"We are already shipping ahead of schedule," Medvedev said. Export volumes exceeded planned supplies by 1 billion cubic meters in January and 500 million cubic meters in the first 15 days of February, he said. "We are confident."

Gazprom's average price for Europe will probably rise to $352 per 1,000 cubic meters this year from $306 last year, according to the presentation. Gazprom has multi-year contracts with customers, with prices linked to oil and products and requirements to take minimal volumes or pay for them. Brent has risen 42 percent in the past year. Gazprom adapted some of its contracts last year to allow a portion of gas to be sold at spot prices and some of the volumes to be delayed.

Take or Pay

Some gas volumes were not taken under the so-called take- or-pay terms in 2009. The make-up period for this gas will be between 3 years and 5 years or even longer, Medvedev said.

"There is an insignificant volume of the make-up gas" in this year's export plan, he said.

Including liquefied-natural gas swap deals, revenue will total $72.9 billion this year, Medvedev said.

Gazprom had a 23 percent share of the European gas market in 2010, where sales accounted for 52 percent of its revenue, according to the presentation.

Gazprom's purchases of Central Asian gas this year will be in line with last year, Medvedev said. Gazprom plans to buy 11 billion cubic meters of gas from Turkmenistan this year, about the same volume as last year.

Gazprom will start filling the Nord Stream pipeline, which is being built along the Baltic Sea to the German coast, in the summer, Medvedev also said. The first commercial gas will be supplied to Europe in the fourth quarter. All volumes for the link have been contracted, he said.

Keyword Tags:

Russia, Oil, Energy - Russia News - Russia - Johnson's Russia List

Bookmark and Share - Back to the Top -        


Bookmark and Share

- Back to the Top -        

  Follow Johnson's Russia List on Twitter Tweet