20 10 on February 24th, Gazprom agreed to modify the long-standing price policy linking natural gas prices with oil for its largest customer, German company E.ON Ruhrgas. According to an article in Russian Business Consulting Daily, natural gas companies have understood that strictly observing the previous price policy may not only fail to expand their presence in the European natural gas market, but also lose their existing share.
According to Handelsblatt, the natural gas industry company has agreed to provide E.ON Ruhrgas with more flexible natural gas purchase conditions, including purchase quantity and price. Bernhard Reuters, president of E.ON Ruhrgas, said that the price of some natural gas will no longer be linked to the price of oil. He pointed out that the details of the agreement will be studied, but the basic terms have been agreed.
Most of the natural gas exported to Europe by natural gas industry companies is sold under long-term contracts, and its price is linked to the oil price six to nine months ago. Due to the increase of liquefied natural gas supply, the supply of natural gas in Europe has exceeded demand. Due to the strict price policy of natural gas industry company.
E.ON Ruhrgas is not the first customer of Gazprom to make concessions. Igor Sechin, Russian Deputy Prime Minister, said last week that natural gas industry companies are negotiating with Turkey to reduce natural gas prices. He said: "Business should be mutually beneficial and compromise should be reached. ENI of Italy has reached an agreement with Gazprom to buy Russian natural gas at a more flexible price.
Liu, an analyst at Veles Capital Investment Company, believes that the discount behavior of natural gas industry companies is timely, but the company may not give up long-term contracts. The characteristics of natural gas market and natural gas transportation will still exist. Even if the share of LNG increases, 60% to 70% of natural gas will still be sold at a fixed contract price in the future. Spot trading 20%. Liu also said that according to the forecast, the natural gas market will return to the level of 2007 before the economic crisis in 20 12 to 20 13 years. This will depend on many aspects, including shale gas development in the United States and Europe and natural gas sales policy agreements in traditional natural gas producing countries (Norway, Qatar, Russia and some Middle Eastern countries).
Klyukov, an analyst with the Capital Investment Fund Company, believes that the current sales price of natural gas industrial companies is the highest in Europe, and it is necessary to make some concessions to users in order to improve their competitiveness. He said that reducing the price of natural gas is very sensitive to natural gas companies, so it should be small-scale and selective, and natural gas companies will not make major changes to the basic contents of long-term contracts.