CEDIGAZ releases details of its long-term gas pipeline contracts
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
CEDIGAZ’s updated edition of its ‘Long-Term Gas Supply Contracts by Pipelines in Europe’ includes the following information:
- The active trend of price and volumes renegotiations has been continuing with an equal strength in the past 14 months.
- Price discounts in the range of 10 - 20% were reported, often accompanied by a reduction of TOP obligations.
- New contracts representing 11.4 billion m3/yr have been identified by CEDIGAZ.
The active trend of price and volumes renegotiations has been continuing with an equal strength in the past 14 months since the last update of the database, with an ongoing push towards more linkage to market prices, culminating with the recent announcement of the deal between ENI and Gazprom which involves “ a reduction in supply prices and an important change in the price indexation to fully align it with the market”,according to the Italian major.
Negotiations of Gazprom contracts (or arbitration decisions) representing a volume of at least 60 billion m3/yr (one third of the volume of Gazprom contracts listed in the Cedigaz database) have been reported.
The result has been a decrease in prices, with price discounts in the range of 10 - 20% often accompanied by a reduction of TOP obligations.
But Gazprom was not the sole provider to face tough renegotiations of its long-term contracts: all major European suppliers were either brought to the negotiating table or subjected to arbitration.
New contracts representing 11.4 billion m3/yr have been identified by CEDIGAZ and added to the database, including the nine contracts signed between the BP-led Shah Deniz consortium and European buyers in September 2013.
The ‘CEDIGAZ Long-Term Gas Supply Contracts by Pipelines in Europe’ lists 185 contracts signed between 1965 and 2014, including 126 contracts presently in force, representing a total maximum contracted volume of 449 billion m3/yr.
CEDIGAZ’s Long-Term Supply Contracts Database: http://www.cedigaz.org/products/gas-supply-contracts.aspx
Edited from source by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/business-news/25062014/cedigaz_releases_details_of_its_long_term_gas_pipeline_contracts/
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