Page 128 - RusRPTNov20

9.2 ​Major corporate news 9.2.1​ Oil & gas corporate news
● Gazprom
Gazprom​ increases 2020 volume guidance to 165-170bcm at an average price of $120-$130/mcm​, per the Head of Gazprom Export Elena Burmistrova.
“Gazprom’s gas export business is recovering sooner than we expected. The European gas market will not completely recover for 2-3 more years, we think, but the direction and rapidity of the bounce off of summer lows is positive,” BCS Global Markets​ said in a note.
EU gas market to recover completely in 2-3 years. The numbers are above our existing house assumptions of 150bcm and c$115/mcm, both of, which have been made somewhat dated by an unexpectedly rapid recovery of the European gas market, which has been surprising on the upside since bouncing off of deep lows in August.
“Prices in recent weeks have continually outperformed our expectations, with UK gas now at $5.7/mcf ($200/mcm), up from $3.5/mcf ($125/mcm) at the start of September. With an accounting breakeven of c$100/mcm, this means that Gazprom is finally exporting gas to Europe with a decent margin again,” BCS GM added.
“For investors, we think the direction of price and volumes (up) and the speed of recovery (fast) in 4Q are more important than absolute levels. We still think it will take until 2023 for the European market to completely recover from the combined impact of the COVID-19 crisis and the 2nd LNG Glut, but recover it will. In the meantime, look for a resurgence in US exports of LNG, already under way and driven by the suddenly wide open arbitrage between US gas prices on one hand and European and Asian prices on the other.”
Russia’s top gas producer Gazprom plans to sell around 6 mln tonnes of liquified natural gas in 2020 and boost volumes starting 2021 ​due to commissioning of new projects, Deputy Chairman of ​Gazprom ​Management Committee, Chief Executive Officer of Gazprom Export Elena Burmistrova said in an interview with a corporate magazine, ​TASS ​reported. “We are actively expanding our LNG portfolio and managed to almost double it in the past several years. Particularly, we plan to sell around 6 mln tonnes of LNG by the end of 2020,” she said. Starting 2021, the holding expects additional sales volumes due to the planned commissioning of an LNG complex in the area of the Portovaya compressor station, Burmistrova added. Its capacity is 1.5 mln
128 ​RUSSIA Country Report​ November 2020 www.intellinews.com