News

18 March 2016

Gazprom Export's Gas Auction for the Baltic States Completed

The auction of OOO Gazprom Export for sales of natural gas for the Baltic States conducted from the 15th till the 17th of March 2016, has been successfully finalized. This sales mechanism supplements the system of long-term contracts. As a result of the auction, deals for 80 lots with 6 clients were concluded, with a total volume of over 420 mcm being sold.

“We have managed to sell more than three fourth of the whole volume offered for the Baltics, to earn additional revenues, and to gain valuable experience”, Deputy Chairman of Gazprom’s Management Committee Alexander Medvedev said.

“The auction’s results demonstrated that a niche for auction gas trade exists, and that this trading scheme can successfully work on the Baltic market too. We are satisfied with the results of our second gas auction, and we will use this model for the other European gas markets as well”, Director General of Gazprom Export Elena Burmistrova said.

Background information

Gazprom Export carried out the first gas auction in September 2015. Addressing the challenges of the evolving energy market, the company tested a new mechanism of sales for gas delivered via Nord Stream. As a result over forty lots were sold to 15 clients, with a total volume of over 1.2 bcm
The auction for the gas supply to the Baltic States in the 2nd, 3rd and 4th quarters of 2016 was announced by Gazprom Export on February 27th, 2016. The deadline for bid submission was March 8th, 2016. The biddings were conducted for the three days, from the 15th till the 17th of March. Gas sold at the auction is to be delivered in the 2nd, 3rd and 4th quarters of 2016 to the delivery point at Kotlovka gas metering station (at the border of Belorussia and Lithuania). Also, gas volumes in the Inčukalns Underground Gas Storage (Latvia) were offered. More than 560 mcm of gas was offered at this auction.
 

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