Gazprom makes new allowances to European customers

Gazprom makes new allowances to its European consumers and is ready to focus on spot prices to lower the contract prices. Only Eni has been granted this but the scheme might become useful for Gazprom itself.

Gazprom is ready to take into account the spot gas price when forming the prices in its long-term contracts with the basic connection to the oil listing, 2 sources close to Gazprom said. Until now the concern has been doing it reluctantly insisting on the fact that there is no global gas market compared to the oil market with its listings. The European gas stock exchange markets are not liquid and the prices on them are volatile that puts the reliability of the supplies under threat. The construction of the LNG plants around the world was supposed to make the gas market global but it didn’t happen, A. Miller said in May. Europe lost the fight for the world LNG due to the spot prices. LNG went from the EU spot market to Asia on the long-term contracts where prices are higher and it won’t return to Europe any more, Mr.Miller said.