The export of “Gazprom” in the CIS countries against the background of the spread of coronavirus maybe in 2020 to fall by 16.3% to 166.6 billion cubic meters. This is the lowest level in 2015. The average annual price, expect the company will be reduced even more — by 37% to $133 per 1 thousand cubic meters. In this regard, “Gazprom” plans to reduce capital investment by 20% and to defer some projects.”Gazprom” proceeding from the current situation, expects gas exports to non-CIS countries in 2020 will reach 166.6 billion cubic meters, with an average price of $133 per 1 thousand cubic meters (in 2019 199 billion cubic meters and $211 per 1 thousand cubic meters), said the head of foreign economic Department of monopoly Alexander Ivannikov in the teleconference. He noted that a significant impact on the world in General and the oil and gas industry is having a pandemic. So, the summer cost of gas to the EU under contracts “Gazprom” could fall to $70 per 1 thousand cubic meters, and the winter — again rise to $120-130 per 1 thousand cubic meters, said head of the analysis Department of “Gazprom export” Andrey Zotov. This assessment is based on forward curves at liquid trading platforms in continental Europe. Already, spot prices for gas in the EU on the hub TTF is about $70 per 1 thousand cubic meters.In the medium term, according to Gazprom, subject to rapid decline in the number of cases of coronavirus and the emergence of anti-infection, prices will recover and even grow. “If the situation with coronavirus will be scripted V-shaped or U-shaped, but compressed period, say tools will be developed to an effective vaccine, we assume that prices in Europe and in the Asia Pacific region can increase the number of dollars per MBTU, and in two or maybe even three times on the horizon several years,” said Mr. Ivannikov.In the domestic market, the situation is more stable, but also there is a decline. As the head of the Department 314 of “Gazprom” Andrei Chebanenko, the delivery of the company to Russian consumers in the first quarter will decline by 9%, and in the whole year by 5%.According to Alexander Ivannikov, at the end of the first quarter, the company decided not to change the budget for 2020, but reduce the spending limits for capital and operating items. Again numbers will be discussed for the half-year results. “Gazprom” intends to reduce by 20% the operating expenses in the gas business (about 140 billion rubles) and power generation business, and lower expenses in the oil business by reducing the geological and technical measures in the wells developing the fields.But, as said Mr. Ivannikov, these reductions will not change the timing of the implementation of key investment projects. At the same time the top-Manager recognized that some projects may be SDVinuta, thus, costs will be reallocated over the years. He did not specify what specific projects this will affect.Olga Matushenko
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