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Gazprom H1 exports to Europe rise 10%
28.06.2013 16:27 "Agro Perspectiva" (Kyiv) —
Gazprom exported 10% more gas to countries outside the Commonwealth of Independent States in the first half of this year, CEO Alexei Miller said at the company’s AGM, Voice of Russia reports referring to Interfax.
Last year was not a simple one for European energy, Miller said, «but in the second half of 2012 we see our share in the European market growing.»
Miller said that deliveries by other exporters in the first quarter contracted substantially: Algeria by 10%, Libya by 13%, and Qatar by 42%.
«Additional demand forming in Europe as a result of an under-supply of liquefied natural gas is satisfied by our long-term contracts with oil indexation,» he said.
Gazprom’s own gas production in European countries is steadily dropping, and producers of liquefied natural gas (LNG) prefer markets in the Asia-Pacific region, Miller said.
«Britain suffered from this in the spring. Surges in free prices due to interruptions in delivery there rose to a level exceeding Gazprom’s export prices by more than twice,» he said.
LNG deliveries to Europe proved significantly lower than earlier projected level in 2012, too, he said. Europe’s share of the world LNG market slipped to 21% from 28% in 2009.
«This is one indicator that the role of pipeline gas to the European market is growing, and significant additional market niches for Gazprom have arisen in the LNG segment.
Europe needs natural gas in predictable amounts and at predictable prices,» he said.
It is possible to forecast total natural gas sales in Europe and Turkey at more than 160 billion cubic meters (bcm) for this year as a whole based on the H1 dynamics, Miller said.
Gazprom sold 151 bcm of gas to non-CIS countries last year, 139 bcm of that under long-term contracts, he said.
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