Gazprom’s price tariff for Europe disclosed

ISTANBUL

A pressure-gauge is seen at a gas-distributing station after it was opened near the village of Atolino in Russia. REUTERS photo

Sale prices from Russia’s gas export monopoly, Gazprom, to 21 other European countries were revealed for the first time Feb. 3 by daily Izvestia, who claimed the information was obtained from company executives.

Details of gas deals, including prices and amount of gas sold by Gazprom to European countries, were disclosed in the report, revealing that the United Kingdom, which provides 10 percent of its gas needs with Gazprom gas, pays the cheapest price at $313.4 per 1,000 cubic meters. Macedonia, however, which is 100 percent dependent on Russian gas, buys the most expensive gas, paying $564.

Turkey ranks eighth among 21 countries with a price of $406.7. As Turkey is Gazprom’s second biggest client, buying 23 billion cubic meters of gas per year, this amount will decrease by 18 percent along an 8 percent discount.

The dependence level on Russian gas is reflected remarkably on the gas’ price, according to the data. Macedonia and Bosnia pay $515.2 and are completely dependent on Gazprom, Bulgaria pays $501 and is 90 percent dependent, while Poland shells out $525.5 and is over 60 percent dependent. The cheapest gas is supplied to United Kingdom whose demand of Gazprom gas is only about 10 percent, Izvesita reported.

Since the release of the data, which daily Izvestia said was acquired from Gazprom’s executives, the European Commission has already requested to see the company’s contracts. Gazprom has never officially disclosed prices for Europe. Such data was published only in cases of gas “wars,” like the one with the Ukraine that saw Gazprom’s clients paying anywhere between $416 and $432 per 1,000 cubic meters, according to Izvestia.

Gazprom was forced to agree to a series of significant adjustments to the current contracts last year.

In January, the state monopoly said that “based on market conditions” corrections were made to the price of gas contracts with GDF Suez (France), Wingas (Germany), SPP (Slovakia), Sinergie Italiane (Italy) and Econgas (Austria), by reducing prices about 10 percent. Izvestia’s source notes that Gazprom plans to increase shipments to Europe in 2013 with 140.5 billion to 151.8 billion cubic meters and 209 billion cubic meters in 2015. The company predicts average prices will fall by almost 14 percent, but the volume of gas sold will increase by 8 percent.