Gazprom Export develops new EU spot gas trading presence

LONDON (ICIS)–A new department has been created within Gazprom Export to increase its presence trading short-term gas at European markets, ICIS has learnt.

“We believe that spot trading can become a new growth point for our business,” a source close to the Russian supplier said.

“Last year a special department was created in Gazprom Export to develop short-term gas trading in addition to [its] traditional portfolio of long-term contracts.”

Increased short-term trading by the Russian player may add to liquidity at the EU’s traded hubs.

In February Gazprom announced a restructure to how its trading subsidiaries operate. All international supply, trading and marketing within the entire Gazprom business was to be merged into one entity. This would be done in two stages, over two years. First, the three arms of Gazprom Germania would combine, before being fully merged with Gazprom Export after two years.

Historically, Gazprom Export has traded by agreeing long-term, oil-indexed deals which include take-or-pay clauses, while units such as Gazprom Marketing & Trading have been the arms which trade at Europe’s gas hubs.