Speakig out: Alexander Medvedev
'Europe will take the gas it's ordered'
Russian gas giant Gazprom expects its European customers to fully take volumes of contracted gas this year, avoiding the need to fine them for low consumption, the company's export chief Alexander Medvedev said.
The comment from Medvedev follows a report in the Wall Street Journal that European customers owe Gazprom $2.5 billion under take-or-pay provisions, which fix a minimum amount of gas that they must buy annually.
"The take-or-pay condition is a fundamental principle for gas markets. It is not only Gazprom's position but also the position of other exporters. So as far as the take-or-pay conditions are concerned, they will be all met," Reuters quoted Medvedev as saying.
Industry analysts are eagerly watching for signs Gazprom could make concessions after European customers slashed Russian gas imports following the onset of the crisis.
It also coincided with a steep gap between prices for long-term pipeline supplies and spot gas as Gazprom's prices are adjusted with oil prices with a six to nine month lag, which made spot gas purchases and alternative fuels very attractive in the first half of the year.
Gazprom has said it saw European customers returning to pre-crisis levels of imports in the past two months after the economic environment improved and pipeline gas prices fell.
Medvedev also said he saw a breakthrough at talks with Poland this week about a new larger gas deal. The country has asked to increase deliveries to 11 billion cubic metres of gas next year from around 7 Bcm this year.
He said the deal could be reached as early as Wednesday when Gazprom meets Polish energy player PGNIG.