Gazprom Export Price Seen Rising

Gazprom will get more for the fuel because of higher crude oil prices, Moscow-based brokerage Troika Dialog forecast.

Gazprom's export gas price will average $369 per 1,000 cubic meters this year, up from an earlier forecast of $346, Oleg Maksimov and Valery Nesterov, analysts at Troika, said in a report for clients Tuesday. The gas price will approach $400 in the third quarter "on the back of very high oil and, more importantly, fuel oil prices," they wrote.

Russian crude oil export blend, Urals, will average $85 per barrel in 2008, up from the earlier forecast of $75 a barrel, Troika forecast. The analysts raised their long-term forecast for Urals to $70 a barrel, up from a $50.

Gazprom links gas prices in export contracts to other fuels used in power production, including crude oil and fuel oil. Russian gas prices lag oil prices by about six months.

Gazprom export gas prices are now forecast at $359 per 1,000 cubic meters in 2009, up from the earlier forecast of $293, Troika said. Urals will average $80 a barrel in 2009, up from the earlier $60 forecast.