Page 110 - RusRPTJun20

9.2 ​Major corporate news 9.2.1​ Oil & gas corporate news
● Gazprom
Natural gas pipeline exports by Russian energy giant ​Gazprom plummeted by almost one-fifth in the first quarter ​against the backdrop of weak demand, a source familiar with the data told ​Reuters​ on Thursday. Exports from Gazprom to Europe, including Turkey, reached almost 40bn cubic meters in the first three months of the year, down 19% year-on-year. Gazprom accounts for around 35% of the European gas market. The company has said it expects its natural gas exports to decline by around 16% this year as the coronavirus crisis hit global demand. .
Gazprom almost halved its gas transit via Ukraine ​in January – April, to 15.5bn cubic meters, according to Ukraine’s gas pipeline operator. The state-controlled gas company sees its exports, mainly to Europe, falling to 166.6bn cubic meters (bcm) in 2020 from around 199.2 bcm last year. It said it was caught up in a “perfect storm” of the warm winter season and the global outbreak of the coronavirus. The reduction shifts Gazprom further away from its long-term target of 200 bcm in gas exports to Europe, a key source of revenue for the company.
Russia’s energy giant ​Gazprom​ predicts that the volume of pipeline gas exports will significantly decline compared with last year​, Head of the Financial and Economic Department Alexander Ivannikov said, commenting on the company’s financial report under the 2019 International Financial Reporting Standards (IFRS), Vedomosti writes. The company expects that its exports will reach 166.6bn cubic meters at an average annual price of $133 per 1,000 cubic meters. However, these figures could change depending on the market situation, he noted. Last year, Gazprom supplied Europe (Turkey included) with 199.2bn cubic meters of gas, with an average price of nearly $204 per 1,000 cubic meters. Gazprom’s export revenues from these supplies totalled nearly $40.8bn. But starting from early 2020, the company faced a whole number of problems on its key export market. In accordance with the figures outlined by Ivannikov, this year Gazprom’s export revenues could be nearly halved to $22.1bn.
Poland’s state gas company PGNiG is in talks with Gazprom for a refund of $1.5bn in overpayments to Russia,​ company chairman Jerzy Kwiecinski
110​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com