<article><p class="lead">Russian state-controlled Gazprom's sales and average price to Europe, excluding the Baltic states, and Turkey increased in July.</p><p>Sales of 15.6bn m³ were up from 14.74bn m³ a year earlier and 15bn m³ in June. Brisk withdrawals helped offset a drop in physical deliveries from Russia because of Yamal-Europe and Nord Stream maintenance.</p><p>Russian exports — including the Baltics but not Blue Stream to Turkey — fell to 14.6bn m³ from 14.9bn m³ a year earlier. They were the lowest for any month since August 2016.</p><p>Sales considerably higher than exports suggest heavy withdrawals, with Gazprom saying it uses its storage to meet contractual nominations rather than trade summer-winter spreads. This results in <a href="https://www.argusmedia.com/en/blog/2018/july/16/nord-stream-halt-provides-data-complications">Russian pipeline maintenance</a> rarely giving substantial support for outright European gas prices.</p><p>European prompt prices were considerably above the cost of Russian supply, which encouraged high nominations and the strong sales.</p><p>Gazprom's average price for Europe, excluding the Baltic states, and Turkey of $237.80/'000m³ — €19.23/MWh — was up from $230.30/'000m³ in June. But the TTF everyday market was considerably higher at €22.19/MWh, having been supported this summer by below-average stocks at the start of April and firmer coal prices.</p><p>The TTF front-month index and crude-linked prices have risen in recent months, which could push up Gazprom's export prices further over the remainder of the year. But TTF near-curve contracts remain considerably above the cost of Russian supply, which could offer an incentive for high imports from Russia to continue.</p><p>Sales increased to 115.9bn m³ in January-July from 108.9bn m³ a year earlier. Gazprom plans to top its record sales of 192.2bn m³, recorded in 2017, and has said it could test its maximum contractual volume of 205bn m³/yr.</p><p><div class="picture"><div><span class="pic_title">TTF above Gazprom average price</span> <span class="units">€/MWh</span></div><img src="https://argus-public-assets-us.s3.amazonaws.com/2018/08/01/gazprompricejuly01082018033218.jpg"></div></p><p><div class="picture"><div><span class="pic_title">Gazprom sales and exports</span> <span class="units">mn m³/d</span></div><img src="https://argus-public-assets-us.s3.amazonaws.com/2018/08/01/gazpromsalesandexports01082018033134.jpg"></div></p></article>
