New Forms of Trade

In addition to traditional supplies under the long-term contracts (LTCs), Gazprom is developing new trade instruments, whose role is growing. In 2015 and 2016, Gazprom Export LLC successfully held three auctions for the sale of natural gas to the European consumers. Within the auctions, more than 3.6 bcm of gas have been sold in addition to the LTCs.

Since September 2018, the company's own Electronic Sales Platform (ESP) has been operating. This tool has proven to be effective, reliable and demanded among customers. This is due to the unique variability of supply conditions: gas can be purchased both at liquid gas hubs in Europe as well as at illiquid border delivery points. Market players are offered a wide range of trading tools: from sales with deliveries "within the day" to deliveries for a "calendar year", as well as the ability to pay in different currencies.

With that, ESP is becoming an important additional channel for gas sales, which allows maximizing the profit from gas supplies to Europe. In total, more than 16.5 bcm were sold within the operation of the ESP from the beginning of sales in September 2018 up to the end of 2019.

Gazprom Export has also introduced its own index, the ESP European Gas Index (ESPGazEX). This indicator is calculated as a weighted average price of all transactions on the ESP with deliveries in the corresponding month.

The company is constantly working to expand trading opportunities on the ESP by offering more flexible delivery periods, more convenient tools of sales as well as by concluding framework agreements with customers to simplify interaction.