[KevO]

From next year, Gazprom will buy its gas from Central Asia at double today's rates, following the trend of high prices in Europe, CEO Alexei Miller said in a televised meeting with Prime Minister Vladimir Putin on Tuesday.

Miller also reiterated that he saw Gazprom's average gas prices to Europe rising to $500 per 1,000 cubic meters by the end of the year, a prediction he made in Azerbaijan last week.

Such price rises will most likely be passed on to Ukraine, the biggest buyer of Gazprom's gas from Central Asia, and could spur renewed price disputes with Kiev.

Growing domestic demand for gas has led to consumption increasing by over 25 billion cubic meters in the last three years, Miller said.

"That is a lot of gas, as much as Gazprom exports to a country like Italy each year," he said.

"The domestic market is becoming a very serious rival to the external market," Miller said, especially after the government decided to move toward reduced gas subsidies for Russian customers.

To meet increasing demand, Gazprom has revised its annual production target from 561 bcm to 563 bcm and will aim for 570 bcm by 2010, Miller said.

The Moscow Times

[burtonridr]

Yea they kinda missed the party...

[MOCKBA]

To meet increasing demand, Gazprom has revised its annual production target from 561 bcm to 563 bcm and will aim for 570 bcm by 2010, Miller said.

It is all nice and optimistic, only all 3 of the giant fields supplying Europe are at least 65% post-peak by now. Without Bovanenkovskoye online prior to schedule sometimes in 2009 GazProm won't be able to meet its contractual obligations in Europe and they just broke the ground this year. No wonder that couple years back they've been making about as much on Turkmen gas transit as Turkmens, last year it was a bit less then half of what Turkmens are making and with new signed deal they are breaking even plus subsidizing infrastructure development in Turkmenistan.

Here are couple interesting reads link
link

THis winter would be interesting....

[dissident]

Why should Ukraine get any discount? Ukraine's gravy train days are over, now there are no more suppliers selling their gas for $180 per thousand cubic meters. But there is a good chance that Yuschenko will throw a tantrum sometime around January 2009. Like Saakashvili he thinks NATO is there to back him on anything, including a gas price discount. It is going to be January 2006 all over again.