MOSCOW, Nov. 16 (Reuters) - Russia's gas export monopoly Gazprom, supplier of a quarter of Europe's gas, expects sales to reach pre-crisis levels in 2012, Gazprom export chief Alexander Medvedev said on Tuesday.
Gazprom exported more than 180 billion cubic metres of gas in 2008. Exports fell to 140 bcm in 2009, the year after the credit crisis metastasised into the global economy.
The state company cut its production forecast this year to 515 billion cubic metres from 519 bcm because of weak economies at home and abroad. Falling demand in Europe meant European countries paid for 5 billion cubic metres of unused gas under take-or-pay clauses in their contracts to purchase Russian pipeline gas, a rate that was set to double this year, Medvedev said.
"It’s not just a matter of volumes, it’s a matter of the revenue that comes from them," Medvedev told the televised conference.
Gazprom, which has been forced to introduce a spot pricing element into some of its key European contracts as its core clientele switches from pipeline gas to cheaper spot volumes, defends its long-term oil-linked European sales contracts.
Medvedev said Gazprom was trying to encourage European consumers to buy under long-term contract by providing discounts on a sliding scale for gas purchased on top of the take-or-pay volumes they specify.
A deal extending Russia’s gas supply arrangement with Poland was an example of a recent deal offering deep discounts.
In sharp contrast to producers’ assertions that Europe is facing a years-long gas glut, Medvedev said Europe would fall short within the next 20 years.
He cited forecasts for European gas consumption of 650 bcm in 2030, of which 400 bcm would be imported. "But we can’t exclude that the supply gap will be greater, because some of Europe’s current suppliers are unlikely to maintain current sales levels. So it is important to think about how to cover the deficit and maintain consistent supply to European industry and households."
