Gazprom, Eni to revise gas supply terms
Russia's Gazprom has agreed to review the terms of its long-term contracts to supply gas to Italy's Eni, the latter company said on October 29.
The pair will review the terms "in light of the current and future evolution of the market, including the settlement of the ongoing disputes between the parties," Eni said, without disclosing any other details.
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Italy is one of the largest markets for Gazprom's gas in Europe, with supplies amounting to 22.1bn m3 in 2019.
Several of Gazprom's customers in Europe are seeking changes to contract terms following a spike in hub prices in Europe. Gazprom used to use mostly oil-indexed pricing for its gas supplies, but at the request of buyers, gas-on-gas pricing now dominates. While beneficial to these buyers for most of the last decade, gas-on-gas pricing has also made them more vulnerable to price volatility.
Poland's PGNiG said on October 28 it had asked Gazprom for a price cut, mere months after resolving a pricing dispute with the Russian supplier.