Gazprom PJSC, the Russian natural gas producer preparing to meet investors in New York and London this week, seeks to increase supplies to Europe to record levels.
The Moscow-based exporter, which provides about 30 percent of the European Union’s gas needs, plans to boost flows to Turkey and the EU bar the Baltic States by 2 percent this year to a record, with further growth through 2018, according to its non-public budget obtained by Bloomberg. That is more ambitious than public statements by the company to maintain supply.
Russia, which relies on pipeline gas sales outside the former Soviet Union for more than 10 percent of its total exports, has increased its dominance in Europe as crude’s 30 percent decline over the past year made Gazprom’s oil-linked prices more attractive. The company will Monday hold an annual Investor Day in New York for the first time since 2014 after last year seeking to woo bond and shareholders in Asia.
The gas exports to most of the EU and Turkey are seen at 162.6 billion cubic meters (5.7 trillion cubic feet) this year, up from 159.4 billion in 2015 and above a record 161.5 billion in 2013, the budget shows. Supplies are seen at 166.1 billion cubic meters in 2017, with 166.3 billion in 2018. Most of the increase is seen in flows through the Nord Stream gas pipeline under the Baltic Sea to Germany.
Gazprom’s press service declined to comment. The company has scheduled an investor meeting in London for Feb. 4
Gazprom budgeted its gas output at 456.7 billion cubic meters this year, up from about 420 billion in 2015, a record-low level for the company. Its dividend payments set in the budget match last year’s level of 7.2 rubles a share and are in line with public statements made by Gazprom executives over the past months.
Recommended for you
