Gazprom Tests New Sale Mechanisms, Holds Auction for Additional Gas to Germany
Russia's Gazprom Export said on Friday it would hold auctions in September for winter gas supplies to northwest Europe.
‘The auction will be carried out by Gazprom Export in September 2015 with gas supplies during the Delivery Period Winter 2015/2016 to several delivery points in North-West Europe, at the choice of a customer, with total volume of 3.2 bcm’ reads a note released on Friday.
Gazprom said that it is a way to test a new mechanism of gas sales to Europe, while confirming its resolve to keep long-term contracts in place.
‘All our existing as well as potential new customers are welcome to participate in the prequalification procedure. All relevant information for the participation in the process can be found below on this page for download’ the company wrote in a separate press release.
The Russian company will hold three auctions: the biggest at the Delivery Point Olbernhau II (between the Czech Republic and Germany), the second biggest at the Delivery Point Greifswald NEL in Germany, and the third at the Delivery Point Greifswald OPAL in Germany.
The deadline for submissions to pre-qualify for the auction is August 14.
The new sale mechanism shows that the Russian oil and gas industry is trying to change its strategy, moving toward a more spot-based European market.
Partnerships with major European and American companies are part of the game too.
‘RN-Exploration (100% Rosneft subsidiary) and ExxonMobil Exploration and Production Mozambique Offshore Limited filed joint bids to participate in the fifth license round organized by the Republic of Mozambique Institute of National Petroleum (Instituto Nacional de Petróleo)’ Rosneft wrote on Thursday.
The Kremlin is active to maintain ties with other European countries, and other players. On Thursday, Vladimir Putin had a telephone conversation with President of Turkmenistan Gurbanguly Berdimuhamedov and with Prime Minister of Israel Benjamin Netanyahu.
‘When discussing bilateral issues, the two leaders voiced their determination to further develop the entire range of Russian-Israeli cooperation’ the office of Putin wrote on Thursday.
On the other hand, Tel Aviv is reportedly moving closer to Ukraine.
‘Israel will help Ukraine to treat military and civilians that suffered during the fighting in the east. This was discussed during a meeting between Vice Prime Minister- Minister of Regional Development, Construction, Housing and the Municipal Services of Ukraine Hennadii Zubko with Israeli Ambassador to Ukraine Eliab Byelotserkovski” Ukraine’s government wrote on Friday.
Earlier this week, the Russian gas giant confirmed its interest to invest in new pipelines, while Russia’s Economy Ministry said that it expected Gazprom’s gas production to go down to an all-time low of 414 billion cubic metres (bcm) per year.