Gazprom has increased the target price for its natural gas exports in 2021, indicating caution over the volumes it can deliver, as Europe’s energy crisis worsens, Bloomberg reports.

Consolidating stocks in Russia is a priority, Europe’s largest gas supplier said. Only after replenishing its storage capacity by the end of October will the company analyze the potential increase in exports to mainland Europe., is shown in the separate notes of analysts from Wood & Co. and BCS Global Markets, after talks with Gazprom executives.

Gazprom increased the guide price for its natural gas exports to Europe and Turkey this year by $ 295-330 per 1,000 cubic meters, wrote Ildar Davletshin, head of Wood & Co.’s Russian research division. Mitch Jennings, an analyst at Moscow-based Sova Capital, presented the same price range. A review of Gazprom’s average price outlook in the region is good news for the company’s investors, indicating higher dividends.

But representatives of Wood & Co. and Sova Capital also said that Gazprom maintains its conservative estimate of 183 billion cubic meters of annual gas supplies to Europe and Turkey.

Russian President Vladimir Putin has suggested that Russian gas exports to Europe could reach a record high in 2021, but did not specify what the volumes are or when they will begin.

It is not uncommon for Gazprom to provide cautious estimates of deliveries, as its sales are highly weather-dependent, both in Russia and abroad.

However, in recent days the company has done its utmost to emphasize that it is fulfilling all its contractual obligations and that it aims to increase exports whenever possible, writes Agerpres.

European reference gas prices have risen by more than 300% since January due to low stocks, high demand in Asia and disruptions.
Rising energy prices have brought electricity costs in Europe to the highest level in years and the situation is unlikely to change by the end of the year, which means high bills for winter heating for consumers.

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