Gazprom's Miller Sees Respite in Rising Gas Prices

Gazprom Management Committee Chairman Alexei Miller has said that natural gas prices could go down in the first quarter of 2012 report's Serbia's Tanjug

Miller was in Serbia to meet with President Boris Tadic and to commerate the opening of a underground storage facility build by Srbijagas in partnership with Gazprom in the northern town of Banatski Dvor.

The project marked the first natural gas underground storage facility for Serbia. Russian gas supplies to Serbia have been disrupted in the past due to disputes between Russia and Ukraine.

Miller told a press conference at a Naftna Industrija Srbije refinery in Pančevo that the price of natural gas, which now stands at about USD 500 per one thousand cubic meters, is calculated on a nine-month basis, following a complex formula which tracks the oil price movements at the world's market.

However, Miller did not specify by what amount the prices would be reduced, or if reductions would be specific to certain partnering nations.

Miller said that Russian gas exports to the EU market the export will go up by 25 percent (versus 2010), reaching as much as 112 billion cubic meters.

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