Gazprom plans to conduct yet another auction before the end of the year for gas sales, head of the company Alexei Miller told reporters.
“We are planning the next gas auction before the end of 2015. The corresponding information will be on our website. So, as they say, watch the commercials,” he said, adding that new supply directions will also be on auction.
He also said that the company was looking at the possibility to increase gas sales at auctions to 6 billion cubic meters.
At the first auction 3.24 bcm were put on sale, and 1.3 bcm were sold.
Miller said that gas auctions became an alternative to gas sales according to long-term contracts, in which the price for gas was pegged to the cost of oil. “Some critics of contracts with oil pegging have gone quiet. And those companies that asked to review the formula also became quieter. And now the prices of contracts with the oil pegging are lower than spot markets. And of course we reacted. The gas auctions are the new approaches for working on the market. And of course, we will continue the practice of gas auctions,” he said.
“In which direction will we develop auction trade: we will increase the timeframe of supplies. At the previous auction the timeframe was six months, at the next auction the timeframe will be one year,” Miller said.
