Tuesday, 15 February 2011

Gazprom cuts gas prices for some European clients

Gazprom, Russia's top energy firm, said on Monday it agreed to cut gas prices in its long-term contracts for some European clients last year on the back of sagging demand and low spot prices.

A deluge of liquefied natural gas (LNG) in Europe over the past two years, at a time of weak demand, has often driven spot gas prices well below Gazprom's long-term contract prices, making Russian gas unattractive and unprofitable for its customers.

Gazprom did not say by how much it cut the prices, although, according to its own estimates released last week overall average prices for its gas in Europe in 2011 will be increased by some 15 percent to $352 per 1,000 cubic metres.


No comments:

Post a Comment