Oxford Energy Podcast – Gazprom’s summer sales strategy and capacity bookings via Ukraine
With European hub prices climbing to record levels for this time of year, a question that has been increasingly asked by analysts is whether Gazprom is leveraging its market power to maintain such prices, specifically by holding back the amount of gas it is flowing to Europe via Ukraine. In this Podcast David Ledesma talks to Jack Sharples to discuss his chapter in the recent OIES Gas Quarterly “Gazprom’s summer sales strategy and capacity bookings via Ukraine” that shows that while the Ukrainian system is physically capable of flowing more than at present, there are nuances around the type of duration of capacity that GTSOU (the Ukrainian TSO) is offering at its auctions. Equally, Gazprom is well within its rights to pursue a strategy that maximises its sales revenues across its substantial (and largely hub-indexed) European LTC portfolio, by meeting all its counterparty LTC nominations but not offering substantial near-term volumes to European hubs.
