Miller talked about the historical record of gas export in 2016

Miller talked about the historical record of gas export in 2016

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The Head Of “Gazprom” Alexey Miller

Photo: FotoImedia

“Gazprom” has set a new record for gas exports to Europe and Turkey, putting in 2016, more than 179 billion cubic meters of gas, said its CEO Alexei Miller. The historic maximum was helped by low gas prices and weather, experts say

In 2016, “Gazprom” has set a new absolute record of gas export to foreign countries, said the Chairman of the Board of the company Alexey Miller at the meeting on Monday, January 9, reported the press service of “Gazprom”.

According to Miller, in just 2016, “Gazprom” has exported to Europe and Turkey 179,3 billion cubic meters of gas, which was “high in the entire history of the gas industry”. Compared to year 2015 (it was delivered 158,56 billion cubic metres) exports of “Gazprom” in the far abroad countries rose by about 12.5% or 19.9 billion cubic meters “, for example, is comparable to the volume of deliveries of the company last year in the UK is 17.8 billion cubic meters,” — said Miller. “The record result demonstrates a significant increase in demand for Russian gas in Europe and our ability to provide reliable export in the required amount,” — said the head of “Gazprom”.

“This was not in the Soviet Union nor in modern Russia”, — said Miller, reporting record deliveries of gas to Germany and other major European consumers for the new year conference call on December 29.

From the beginning of 2017 , the monopoly already three times set a record in terms of daily deliveries in the far abroad. The last record was set Sunday, January 8, when the volume of deliveries amounted to 621,8 million cubic meters of gas, reported the press service of the company. “The maximum result was achieved on Sunday, when gas consumption by foreign buyers, as a rule, is reduced to the lowest levels in a week”, — stated in the message.

The record for the export of “Gazprom” by the end of 2016, due mainly to the fact that the contract price of gas linked to oil prices with a time lag of six to nine months, says the portfolio Manager of the GL Asset Management Sergey Vakhrameev). In the first quarter of 2016, oil prices have reached the minimum (in January Brent crude dropped to $27 per barrel), and after them the price of gas has reached the minimum value (about $150-160 per 1 thousand cubic meters. — RBC), he recalls. Back in the fall of 2016, “Gazprom” spoke about the record volumes of exports to non-CIS countries, adds the Deputy General Director for investments IK “Univer” Dmitry Alexandrov. Was already predictions about the low temperature that caused consumers to form additional reserves, he points out. Moreover, increased instability in the relationship with Ukraine, so European customers form additional amounts in the event of difficulties of transit through the country or a substantial amount of selection with the Ukrainian side, the expert believes. These two factors and generated a record volume of purchases, concludes Alexander.

But now the price of oil rose above $50 per barrel (Monday, January 8, Brent was trading at $55,5 per barrel) over the last year the increase amounted to about 50%, warns Vakhrameev. Accordingly, a six-month delay, that is, since the second or third quarter of 2017, gas prices will also rise by almost 50%, he predicts: in this situation, European consumers will have to choose between “Gazprom” and other suppliers or the ability to purchase gas cheaper on the spot market.

Gazprom, it seems, is not going to stop there. In 2016, its production increased only by 0.14% (570 million cubic meters), to 419,07 billion cubic meters. m the company, according to Miller, is able if necessary to increase production by more than 150 billion cubic meters. “We always work from the market and extract as much gas as you need consumers,” he explained. In the past year, representatives of the monopoly has warned that the company will be reducing production. In the end, she exceeded the plan by about 11 billion cubic meters, said Miller on Monday.

Besides gas, the company still intends to fully abandon transit through Ukraine in favor of “Nord stream-2”, which would pass under the Baltic sea. “With regard to the resource base “Gazprom” it gradually shifted to the North. On the gas map of Russia there is a new powerful gas corridor, which can greatly change the streaming delivery of natural gas for consumers in the Russian Federation and our overseas markets. And, in particular, the development of the Northern corridor, consistent creation of new capacities on the North-West of the Unified gas supply system is the creation of capacity for the supply of gas via sea pipeline “Nord stream-2”, — said the head of “Gazprom” at the end of December.