Gazprom Sells First Gas to Turkey via Online Platform
Russia's Gazprom has reached its first deal to sell gas to Turkey via its electronic sales platform (ESP), its export arm said on November 16, with the 700,000 m3 of gas due to be delivered to Malkoclar on the country's border with Bulgaria in December.
“Gazprom Export continues to expand geography of sales through its ESP," the export business's boss Elena Burmistrova said. "We are very pleased that the gas market of Turkey has shown interest in concluding a deal through ESP, in addition to the longstanding co-operation based on long-term contracts."
Gazprom has seen its sales in Turkey shrink in recent years, amid economic weakness in the country, the government's push to expand domestic coal-fired production and competition from LNG. Coronavirus restrictions weighing down on Turkish gas demand have also been a key factor this year. However, sales doubled year on year and rose by 39% month on month in September to 1.9bn m3, according to Vedomosti, citing Russian customs data.
The recovery "was driven by the reduction in Gazprom's oil-linked prices, which reflect oil prices with a lag of several months," VTB Capital said in a research note on November 16. As winter approaches, spot prices rise but oil indexed contracts reflect the fall in oil this year.
Gazprom's sales volumes are also rebounding in Europe, as are its prices. Its European exports were down only 3% yr/yr in the third quarter, whereas deliveries in the first half were down 19% yr/yr.
"Gazprom's export business is finally turning a corner after a horrid start to the year," BCS Global Markets commented on November 12. The brokerage expects full-year European exports to drop by around 15% to 162bn m3.