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Russia increases natural gas price for Europe by 15

11 February 2011 15:43 (UTC +04:00)

Baku â€“ APA-Economics. OAO Gazprom expects European gas prices to rise 15 percent this year and supplies about 9 percent, said two people at the Russian gas export monopolyâ€™s presentation for analysts and investors today in Moscow, Bloomberg reported.

The average price will probably rise to $352 per 1,000 cubic meters this year from $306 last year, said the two people, who declined to be identified because the meeting wasnâ€™t open to media.

Exports to Europe are planned at about 152 billion cubic meters of gas this year, compared with 139 billion cubic meters last year, they said. Gazprom said it had 23 percent of the market in 2010, they said.

Europe-bound gas deliveries may return to pre-crisis levels this year after spot prices increased, Deputy Chief Executive Officer Valery Golubev said this week in St. Petersburg. Gazpromâ€™s supplies, mostly shipped under long-term contract via pipeline, will face less pressure than last year, he said.

Gazpromâ€™s shipments to Europe slumped to 140.6 billion cubic meters in 2009, from 158.8 billion cubic meters in 2008, as the financial crises eroded demand and some of the Russian companyâ€™s customers shifted purchases to cheaper liquefied natural gas cargoes. Exports were 150.5 billion in 2007.