New Forms of Trade

Along with traditional supplies under long-term contracts, Gazprom Export is developing  new trade instruments.

In September 2018, Gazprom Export launched its own Electronic Sales Platform (ESP) for natural gas sales both on standard market conditions as well as on its own terms directly to market participants. The ESP provides the possibility to conclude contracts for gas supply to any available delivery point (both trading hubs and non-liquid border points) with different periods of delivery, ranging from within day to season ahead and calendar year.  Therefore, via ESP Gazprom Export is able to promptly sell gas on market conditions, taking into account the current market situation, and offering flexible and competitive product.

ESP offers to its clients not only different sales instruments, but the option to pay in different currencies as well. Thus, on 7 March  2019, the first deal on gas sales priced in rubles was successfully concluded.

In April 2019, Gazprom Export introduced its own index, the ESP European Gas Index (ESPGazEX). It is calculated as a weighted average price of all transactions on the ESP with deliveries in the corresponding month.

In June 2020, the ESP sales hit record 4.912 bcm. Within a year the platform sold about 20 bcm with the delivery in 2020 and 7 bcm with the delivery in 2021-2022. The number of the companies, registeres on the ESP, reached 93, including 24 that joined it in 2020. The platform concluded 40 new contracts and 22 framework agreements. The number od successful trade sessions exceeded 4.6 thousand.

In 2020, the platform introduced products with new types of pricing and delivery periods, as well as enhanced flexibility of volumes and geographical scope owing to broadening geography of trade. For instance, the ESP sold first 0.7 mcm of gas via Turkey's Malkoclar delivery point.

In 2020, the company performed trade and optimization operations vie the ESP as well as EFET-contracts (European Federation of Energy Trading). The number of such contracts amounted to 13 and they covered 1.5 bcm of traded gas.

Since August 2020, a part of the deals are concluded with the help of Trayport software, which enables access to offers of all market participants as well as market quotations in real time on one screen.

In order to further develop its trading activity, in 2020, Gazprom Export launched talks with ten European brokers. Potential agreements with them wll pave the way to maximal market liquidity in terms of forward and spot deals. Besides, the company continues the process of its registration at the European Energy Exchange (EEX).