Gazprom plans to hold next European auction in spring 2017

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Russia’s major gas producer Gazprom is going to hold its next European auction for natural gas next spring. It will be the fourth such auction of the company as the Russian giant is trying to meet the growing demand of Baltic and Northern European countries, Gazprom deputy CEO Alexander Medvedev told the company's inhouse magazine.

Gazprom plans to offer auctions for the Baltic and Northern European regions. Still the company does not provide any details about which market would be the focus of the upcoming auction, or the size of volumes offered.

Although Gazprom recognizes the importance of spot sale, it cannot be considered as an alternative to long-term gas contracts, such as Southern and Central Europe.

"I would like to emphasize that we should not overestimate the role of the spot markets in continental Europe, especially in Central and Southern Europe, for which the real gas, not 'paper' gas sold in the hubs, is now practically inaccessible," Medvedev explained.

He also said that the demand for Russian gas is growing in Europe despite its attempts to reduce dependence on Russian fuel.