Moscow (Platts)--11Feb2011/1123 am EST/1623 GMT
Russia's gas giant Gazprom expects to export 152 billion cubic meters of gas to Europe in 2011, up 9.3% from 139 Bcm in 2010, the company said Friday in a presentation. Gas exports to the former Soviet countries, except the Baltic states, are planned at 73 Bcm in 2011, up 7.4% from 68 Bcm last year, the company said in the presentation to investors in Moscow. Gazprom expects gas production to fall to 505.6 Bcm in 2011 from 508 Bcm in 2010 but then rise to 531.4 Bcm in 2012 and then to 558 Bcm in 2013. Gazprom forecast the average export price for its gas supplies to Europe at around $352/1,000 cubic meters in Europe in 2011, compared with $306/1,000 cu m in 2010. The average price for gas to be supplied to the former Soviet countries, except Baltic states, is forecast at $250/1,000 cu m, compared with $233/1,000 cu m in 2010. GAS-INDEXED PRICE SHARE The share of the spot price in Gazprom's long-term export contracts amounted to around 7% in 2010 and is expected to remain at this level through 2013, a source attending the event said. In 2010, Gazprom, among other gas producers, made some concessions on its oil-indexed gas contracts, moving some volumes to a spot gas index and offering better conditions during the oversupply situation seen last year, but this could change again later as supply tightens once more. Spot gas prices were up to 50% lower than oil-indexed prices under long-term contracts in 2009, although they have only been around 25% lower in the second half of 2010. The gap has narrowed further recently. The month-ahead contract at the UK spot market was assessed by Platts at equivalent to $308/1,000 cu m Friday.--Nadia Rodova, nadia_rodova@platts.comSimilar stories appear in European Gas Daily. See more information at http://bit.ly/EuropeanGasDaily