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Gazprom boosts gas trading on SPIMEX,
exports could be next
RUSSIA RUSSIA'S natural gas giant Gazprom is respon- increasing sales on SPIMEX as a sign that Rus-
sible for the rise in trading of gas on St Petersburg sian storage fill may be approaching completion,
Analysts believe the exchange (SPIMEX) from less than 1mn cubic as previously in August the company Gazprom
move may indicate meters (mmcm) per day 8mmcm on October 13, largely withdrew gas from SPIMEX in August
Gazprom is preparing according to Interfax. due to the fire in its gas condensate processing
to hold auctions for As followed by bne IntelliNews, gas prices in plant at Urengoy.
exports to Europe. Europe have surged to all-time high, with Gaz- This was coupled with an unusually large
prom has been subject to criticism for exacer- refill of depleted Russian storage and an atypi-
bating the gas supply crisis unfolding in Europe cally early start to the Russian heating season
by not going beyond its minimum contractual occurring in early September.
obligations. Last weekthe Russian President However, as the weather in the European part
Vladimir Putin hinted that Gazprom might of Russia has recently improved, and Gazprom’s
release more supply onto the market. management has signaled that domestic storage
"We take this appearance of a modest amount should reach planned fill levels in the coming
of gas on the St Petersburg exchange for domes- days.
tic sales as a sign Gazprom may soon be able to "If the weather remains reasonably warm
offer more significant amounts for auction for – no cooler than typical seasonal levels – then
export purposes to an undersupplied Europe," Gazprom should be able to offer larger amounts
BCS Global Markets commented. for domestic or international deliveries relatively
The analysts at BCS GM see Gazprom soon," BCS GM argues.
PERFORMANCE
European gas prices subside
after record highs
EUROPE EUROPEAN gas prices have subsided in recent the European gas market, without disclosing
days after spiking at close to $2,000 per 1,000 details.
Markets were assured cubic metres on October 6 amid dire supply He reiterated this on October 12, but said
by indications that warnings. that EU member states that wanted to increase
Russia would start The contract for November gas supply at supplies beyond the existing agreements needed
sending more gas. the Dutch TTF hub – Europe’s biggest gas trad- to sign off on long-term contracts, implying that
ing platform – briefly touched €157 per MWh Russia was not prepared simply to make more
(around $1,940 per 1,000 cubic metres) on Octo- gas available on the spot market.
ber 6. By October 11, the weighted average price “We have to understand how much our part-
had fallen to €85.2/MWh, although it then ral- ners in Europe want to buy,” he said.
lied to €93.6/MWh on October 13 and €102.2/ Meanwhile, Russia will continue to pump gas
MWh on October 14. However, it then closed on into the country’s underground storage facilities
October 15 at around €88.8/MWh. until November 1 as planned, Russian Deputy
Markets were assured by indications that Energy Minister Evgeny Grabchak told reporters
Russia would start sending more gas. Russian in Moscow on October 13. But it now estimates
President Vladimir Putin said on October 6 that that it has enough gas in storage to get through
Russia was prepared to take steps to help stabilise the winter.
Week 42 21•October•2021 www. NEWSBASE .com P9
