AGL 40.43 Increased By ▲ 0.43 (1.08%)
AIRLINK 127.48 Increased By ▲ 0.44 (0.35%)
BOP 6.60 Decreased By ▼ -0.07 (-1.05%)
CNERGY 4.50 Decreased By ▼ -0.01 (-0.22%)
DCL 8.60 Increased By ▲ 0.05 (0.58%)
DFML 41.99 Increased By ▲ 0.55 (1.33%)
DGKC 87.80 Increased By ▲ 0.95 (1.09%)
FCCL 32.89 Increased By ▲ 0.61 (1.89%)
FFBL 65.00 Increased By ▲ 0.20 (0.31%)
FFL 10.32 Increased By ▲ 0.07 (0.68%)
HUBC 109.75 Increased By ▲ 0.18 (0.16%)
HUMNL 14.80 Increased By ▲ 0.12 (0.82%)
KEL 5.12 Increased By ▲ 0.07 (1.39%)
KOSM 7.55 Increased By ▲ 0.09 (1.21%)
MLCF 41.76 Increased By ▲ 0.38 (0.92%)
NBP 59.99 Decreased By ▼ -0.42 (-0.7%)
OGDC 194.85 Increased By ▲ 4.75 (2.5%)
PAEL 28.21 Increased By ▲ 0.38 (1.37%)
PIBTL 7.82 Decreased By ▼ -0.01 (-0.13%)
PPL 152.30 Increased By ▲ 2.24 (1.49%)
PRL 26.78 Decreased By ▼ -0.10 (-0.37%)
PTC 16.19 Increased By ▲ 0.12 (0.75%)
SEARL 86.02 Increased By ▲ 0.02 (0.02%)
TELE 7.62 Decreased By ▼ -0.09 (-1.17%)
TOMCL 35.50 Increased By ▲ 0.09 (0.25%)
TPLP 8.17 Increased By ▲ 0.05 (0.62%)
TREET 16.15 Decreased By ▼ -0.26 (-1.58%)
TRG 52.76 Decreased By ▼ -0.53 (-0.99%)
UNITY 26.50 Increased By ▲ 0.34 (1.3%)
WTL 1.25 Decreased By ▼ -0.01 (-0.79%)
BR100 9,953 Increased By 69.4 (0.7%)
BR30 30,951 Increased By 350.6 (1.15%)
KSE100 93,902 Increased By 546.9 (0.59%)
KSE30 29,093 Increased By 162.5 (0.56%)

Russia's Gazprom sees no need to wage gas price wars in Europe to squeeze out rivals, including expected liquefied natural gas (LNG) from the United States, Deputy Chief Executive Alexander Medvedev said.
Gazprom provides a third of the gas used in the European Union but relations have soured over Ukraine, prompting the EU to look for alternatives to Russian energy imports.
One potential alternative for gas is LNG from the United States where exports are expected to rise sharply between now and 2019.
"There has been a lot of talk that LNG from the United States is a panacea (for those looking to switch away) from Russian gas... But at the moment there are more preferable destinations for US LNG than Europe," Medvedev said.
"Price will determine the competitiveness of US LNG. I don't see US LNG flowing to Poland or Portugal."
Medvedev reiterated that Gazprom's exports to the EU and Turkey may exceed a record-high 165 billion cubic metres (bcm) per year, topping deliveries of 159 bcm in 2015.
Gazprom generates more than half of its revenue in Europe where Medvedev said sales would reach $28 billion this year. Some analysts have said that in order to preserve its market share in Europe, Gazprom would have to cut prices.
"We don't see any need to wage a pricing war," Medvedev told reporters.
He said gas prices in the second quarter would be the lowest this year but would rise from the third quarter.
Last week, he said the company sees Russian gas prices in Europe this year averaging $167 to $171 per 1,000 cubic metres. That is down from about $240 in 2015, reflecting lower crude prices hitting indexed gas pricing. "We don't need astronomically high gas prices, we need prices which allow us to do our job," Medvedev said.
He said that Gazprom's production costs are one of the industry's lowest at around $20 per 1,000 cubic metres.

Copyright Reuters, 2016

Comments

Comments are closed.