For the second month in a row Gazprom trades gas in Europe at a loss

At the end of the day, the average price for the export of Gazprom's gas dropped to $ 82 per thousand cubic meters. Compared to the May figure, gas fell in price by $ 12 - 12.7%, compared to April - by $ 37.34%. Compared to the beginning of 2020, the price has decreased by half, and relative to the average indicator of 2019, by 2.6 times.

It is not possible to follow the example of Saudi Arabia and to compensate for the lost revenue in volume. Riyadh sold oil at bargain prices, but twice as much, but Gazprom cannot do this, writes Finanz.ru.

According to the Federal Customs Service, in June, Austria (+ 14%) and Italy (+ 30%) increased purchases from key customers. However, supplies to the largest buyer - Germany - fell 21%.

Turkey has almost completely refused Russian gas. It should be reminded that the country used to be the second largest client of Gazprom. In July, only 2 million cubic meters were supplied to Turkey, which is 585 times less than a year earlier.

As it turned out, Gazprom also fails to turn to the east. China demonstrates its independence from Russian fuel - it refuses to buy the volume stipulated by the contract, without pumping through the Power of Siberia and the minimum amount of gas (according to the “take or pay” principle). In May, China sold 281 million cubic meters. This is 12% less than in the first months of Power of Siberia.

Deliveries are 40% behind the contractual schedule (5 billion cubic meters per year), despite the fact that Gazprom's price remains the lowest among suppliers. In April and May, it was $ 183-184 per thousand cubic meters.

And yet, it is the Chinese market that remains one of the few where the Russian company makes money. The average export price for the second month in a row is below Gazprom's profitability point - according to Fitch, the company needs $ 105 per thousand cubic meters to cover costs.

$ 13 is the cost of production. $ 14 - MET. $ 27 - transportation within the Russian Federation. Transportation to target markets in Europe is at least $ 20. In addition, you need to pay a customs duty of 30%.

One of the main problems for Gazprom today is the surplus of gas in storage facilities. On August 1, a record fill level was recorded - 85%, according to the Skolkovo Energy Center.

So, until the end of 2020, the gas monopoly will need to work in Europe on the verge of profitability. Average annual prices are $ 100-110 per thousand cubic meters, and the market will remain unbalanced after the pandemic.