Gazprom Export Begins Auction for Gas Supply to North-West Europe
While reports indicate that Western sanctions hurt Russia’s ability to adopt new oil and gas technologies, Gazprom Export begins the biddings within the auction for gas supply to Europe.
According to Gazprom Export, the biddings are to be held through four days, from September 7th to September 10th. The Bidders will be offered altogether 127 lots with the total volume of 3.24 bcm. The gas will be supplied during the Delivery Period Winter 2015/2016 to several delivery points in North-West Europe, at the choice of the potential customers.
“The European gas market changes constantly and, meeting its challenges, we want to test the new form of trading the gas and see what benefits it can bring to seller and buyers”, Alexander Medvedev commented in the note.
Commenting on the auction, experts said that the Russian company is trying to understand this mechanism, while remaining committed to long-term contracts.
According to rumours, a number of European and Russian companies such as Vitol, E.ON, Engi, Goldman Sachs, Glencore and Novatek are among potential bidders.
As reported by the company, there will be three auctions: i) 48 lots 60 MWh/h each at the Delivery Point Greifswald NEL with optional for the buyers Delivery Point VP Gaspool for delivery period from the 1st of October 2015 to the 31st of March 2016; ii) 57 lots 60 MWh/h each at the Delivery Point Olbernhau II with the option for the buyers to purchase entry capacity to the CZ gastransport network from Gazprom Export for delivery period from the 1st of October 2015 to the 31st of March 2016; iii) 22 lots 60 MWh/h each at Delivery Point Greifswald OPAL exempted. Adjacent OPAL capacity with the exit point Brandov can be purchased from the Network Operator for delivery period from the 1st of October 2015 to the 31st of March 2016.
Meanwhile, Lukoil President Vagit Alekperov told Vedomosti business daily that a reduced access to capital markets also had an impact on Russian companies’ ability to progress with technology.