Gazprom cuts gas export forecast to Europe, Turkey

Gazprom plans to export 158.4 billion cubic meters (bcm) of gas this year to Europe, including Turkey, down from 161.5 bcm shipped in 2013, the state-controlled company said on June 3.

Gazprom added that the average gas price it was charging its clients in Europe, including Turkey, was $387 per 1,000 cubic meters last year.

Gazprom, which accounts for around a third of Europe’s gas needs, said it plans to ship 56.4 bcm to Baltic States and countries in the Commonwealth of Independent States this year, down from 59.4 bcm from 2013.

Ukraine is a major Russian gas transport route to Europe. Moscow and Kyiv are locked in a dispute over prices and volumes, although tensions easing on June 2 when Gazprom delayed switching Ukraine to prepayment for supplies by almost a week - until June 9.

“Talks went for a long time yesterday ... There is an understanding on how to move forward - this is very important,” Gazprom spokesman Sergei Kupriyanov told reporters.

He added that Ukraine has now to repay debts of $1.45 billion for gas delivered in November and December last year.

On the late hours of June 2, after some six hours of talks brokered by the European Union, European Energy Commissioner Guenther Oettinger said the chief executives of Gazprom and Ukraine’s Naftogaz had agreed to consider a plan that could avoid price disputes recurring over the European winter when demand peaks.

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