Page 124 - RusRPTApr21

9.1.1b Oil and gas sector news
Gazprom held a webinar on March 25 to discuss gas export volumes, the pricing outlook and strategic hydrogen opportunities with analysts and investors.
Overall, the company has a positive outlook on European gas markets. Gas storage levels in Europe are below the multi-year average of around 30 bcm, and well below the record levels seen last year. This creates a favorable backdrop for gas pricing in Europe.
As the economics of LNG deliveries to Asia have recovered, LNG volumes have been directed away from Europe, which has resulted in less intense competition there than last year. The company expects Chinese gas demand to grow by over 10% y/y in 2021, while coal-to- gas switching is expected to continue to support gas demand in Europe.
The management guided an average realized European gas export price of $200/mcm and 183 bcm in non-CIS gas export sales (excluding China) in 2021. This is generally in line with our expectations. The company noted that over 85% of the gas it sells is sold at a price linked to either gas hub pricing alone or both hub and oil prices.
124 RUSSIA Country Report April 2021 www.intellinews.com