News

3 December 2019

Gazprom Export To Expand Trading Opportunities on Its Electronic Sales Platform

Gazprom Export LLC has updated the general documents for trading on its Electronic Sales Platform (ESP). The company is expanding operation opportunities and simplifying trading on the platform.

Currently, the ESP provides an opportunity to sign framework agreements with a contract period lasting up to the 1st of January 2022. Earlier, contracts were limited to one calendar year. This opens up the possibility to offer longer delivery periods: ‘quarter-ahead’, ‘season-ahead’ and ‘year-ahead’. The platform also offers a new standardized commercial product: the framework agreement now includes a description of deal procedures as well as nomination procedures for products with delivery period ‘within day’.

In addition, the company has lifted the 1 bcm of gas restriction for contract obligations within one commercial framework agreement. The transaction confirmation process on the ESP has also been simplified, thus dealings between Gazprom export and its counterparties have become less formalized, consequently reducing the amount of paperwork.

“The Electronic Sales Platform of Gazprom Export has proven to be an effective and reliable trading tool. We believe that market interest in our platform will increase as a result of our latest innovations, " – Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom Export Elena Burmistrova said.

 

Background
The Electronic Sales Platform is designed to physically sell natural gas to the European consumers, in addition to supplies under existing contracts. Gas sales through the ESP started at the end of September, 2018. On November 12, the total sales volume via the ESP passed a milestone of 15 bcm of gas.

 

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