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Gazprom signs revised price deal with E.On backdated to 2010

Posted by Editor on Tuesday, 03 July 2012 11:55 | Published in Oil & Gas
Gazprom signs revised price deal with E.On backdated to 2010

Gazprom Export, the export arm of Russian energy Gazprom, has signed a revised gas price deal with Germany's E.ON, bringing the terms of its long-term natural gas deliveries into line with compensation deals with other European customers, Gazprom said on Tuesday. “This agreement is a compromise and takes into account current trends in the natural gas market development,” Gazprom Export head Alexander Medvedev said at the signing ceremony.

The agreement stipulates a retroactive downward price revision from the fourth quarter of 2010. E.ON expects a 1 billion euro increase in its half-yearly financial results from the Gazprom price revision agreement, the company said in a statement.

Following the Gazprom deal, E.ON has raised its 2012 EBITDA forecast to 10.4-11 billion euros from 9.6-10.2 billion euros and its net income forecast to 4.1-4.5 billion euros from 2.3-2.7 billion euros.

Other European gas consumers have previously received a 10 percent price discount from Gazprom.

Some European energy companies, such as Italy's Edison, Germany's RWE and E.ON and Poland’s PGNiG's, appealed to the Stockholm Arbitration Tribunal last year for a ruling on gas price discounts and a switch to gas spot prices, which were far below gas prices set in Gazprom’s long-term contracts.

Poland's state-owned oil and gas firm PGNiG is seeking a 20 percent discount for supplies of Russian gas from Gazprom, Dziennik Gazeta Prawna newspaper reported on Tuesday, quoting source close to the Polish company.

(RIA Novosti)

Gazprom signs revised price deal with E.On backdated to 2010
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