E.ON set to receive Gazprom gas price cut
Published on : 02/07/2012
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The price cut is set to be "conceptually the same" as the one Wingas - a joint venture between Wintersall and Gazprom - received last year according to Alexander Medvedev, Gazprom's deputy chief executive officer.
Representing Gazprom's biggest market by revenue, its European-based customers have sought purchasing contract changes following the 2008 recession; the recession led to a fuel surplus - which dragged spot prices below the contracts.
The contracts are tied to crude and refined-oil product prices but also feature a time lag - which can be as long as nine months.
Commenting on the price cut, Mr Medvedev added: "The price correction will help us sell gas in a competitive way.
"Volumes won't be released," he added.
It was also revealed that Gazprom would not be increasing the weight of spot pricing in its formula.
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