|
|
 |
Gazprom Profits Rising Fast
Price for the natural gas exported by Gazprom are rising much faster than forecast, the monopoly's management reported today to the board of directors. It is estimated that the profit the company derives from exports will be quadrupled. The board of directors will consider pricing policy for the CIS and Baltic countries today.
According to a source, natural gas is selling for much more than was predicted in the extremely conservative Gazprom budget for 2008-2010. This is because the company's budget assumed oil prices of $60-64 per barrel this year, while the real price of $118 per barrel also hold gas prices up. Thus, gas in Latvia is selling for $346 per 1000 cu. m., while it was budgeted at $254 this year, $222 in 2009 and $206 in 2010. The Baltic countries buy about 5.5 billion cu. m. of gas per year.
The high prices in the Baltic countries makes up for the prices charged the CIS member states. Of those, only Georgia pays a relatively high price, $270 per 1000 cu. m. Its neighbor Armenia pays $165 and will continue to pay that price for the next three years. In the other CIS countries, Gazprom intends to gradually raise the price of its gas to the average European price, defined as the price of gas at the border of Poland and Germany, minus transportation costs.
In Belarus and Ukraine, customs duties are also taken off that price. The price for gas n Belarus indicated in the Gazprom three-year budget was $120 per 1000 cu. m. for all three years. In reality, Belarus is paying $128 this year, and will pay $203 next year and $254 in 2010. The price Ukraine will pay has been under negotiation for four months now, without an official agreement.
www.kommersant.com
All the Article in Russian as of Apr. 23, 2008
|
|
|
