Russia's Gazprom Auctions Gas to Baltics

The natural gas sale auction by Gazprom Export for the Baltic States on 15-17 March has been "successfully finalized," Gazprom said March 18. This is the second time it has sold gas this way, the previous offer last autumn being larger and at a wider range of delivery points, but with a bigger percentage remaining on the shelf.

The sales mechanism complements the system of long-term gas supply contracts, it said. Following the auction, deals for 80 lots with six clients were concluded for a total volume of 420mn m³. The delivery period is from Q2-4 this year, either at Kotlovka on the Lithuania-Belarus border or from Incukalns, the sole regional storage facility in Latvia.

“We have managed to sell more than three quarters of the whole volume on offer in the Baltic direction, earned additional revenues and acquired valuable experience,” said the deputy chairman of Gazprom’s management committee, Alexander Medvedev.

“The results of the auction demonstrate that there is a niche for gas trade via auctions, and this trading mechanism can successfully work on the Baltic market as well. We are satisfied with these results and will apply this model on other European gas markets”, added Gazprom Export's boss, Elena Burmistrova.

Before the auctions at least three Lithuanian industrial gas consumers told NGE they had lodged applications with Russian gas monopoly Gazprom for its Baltic gas auction. The total offered was 560mn m³.

William Powell