Gazprom: Gas export to Europe may exceed 165 bn cubic meters in 2016

May 31, 2016 12:00 AM

Russia's gas giant Gazprom may export over 165 billion cubic meters of gas to Europe in 2016, Gazprom Deputy Chairman Alexander Medvedev said Tuesday.

According to the deputy chairman, export figures for the January-May period are already 16 percent above 2015 figures year-on-year.

"By Gazprom Export [company] contracts alone, excluding subsidiaries, 165 billion cubic meters may be supplied to Europe in 2016, this is a very realistic figure, but I do not exclude the possibility of it going even higher if the autumn and winter are average or even mild," Medvedev told reporters.

On Thursday, Medvedev said that Gazprom is expecting to deliver some 165 billion cubic meters of natural gas to Europe in 2016 with an average price of $167-171 per 1,000 cubic meters.

The prime cost for production of 1,000 cubic meters of natural gas at Russia's Gazprom gas fields amounts in general to $20,00 the deputy chairman added.

"On average it is about $20,00 per 1,000 cubic meters <…> Despite the fact that we introduce new remote fields, the average cost continues to be the lowest gas cost in the world. Transport is an essential item in costs and investment program," Medvedev said.

According to him, the oil giant is constructing new gas pipelines using innovative solutions allowing to considerably cut down the transportation expenses and providing Gazprom's competitiveness at any price scenarios.

In 2015, the company supplied 158.5 billion cubic meters of gas to Europe, while its total export to countries outside the Commonwealth of Independent States (CIS) has increased by 28 percent in the first quarter of 2016, according to the company.

Previously, the deputy chair said that Gazprom's losses from declining gas prices have been partially offset by increasing output.

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