Gazprom expects the price of export gas to decline in 2025
Gazprom, the Russian gas producer, said that it expects to see export gas prices fall below current levels in Europe and Asia in 2025 and on average lower than 2024.
The Russian economy ministry also stated that it expects the price of Gazprom gas outside ex-Soviet Union countries to fall by 2025. It is expected that prices will average $304.4 per 1000 cubic metres, down from projected $328.4 for this year.
Gas sales in Europe are falling, and the company is facing challenges. The current transit agreement with Ukraine expires by the end of this year.
Gazprom reported a net loss last year of nearly $7 billion, its first since the year 1999. This was due to declining sales to Europe, which used to be its primary source of income.
Gazprom said on Tuesday that it expects 2024 gas sales will rise by 155 billion rubles ($1.5 billion), to 4.6 trillion rupees. It also anticipates EBITDA of over 2.8 billion, which is one of the highest core earnings in its history.
The board of directors confirmed that the company will invest 1.52 trillion roubles in 2025, down from this year's 1.64 trillion.
Gazprom announced that the funds in the plan approved by the management board of Gazprom last month will be used primarily to develop gas production centres on the Yamal Peninsula, in eastern Russia, and to provide gas to homes.
(source: Reuters)
