The export arm of Russian gas holding Gazprom and German traders Uniper Global Commodities SE and METHA-Methanhandel GmbH stopped arbitration proceedings on gas prices, Reuters reported.
On January 30, 2018, Gazprom initiated arbitration against German companies with a request to revise prices under natural gas supply contracts.
The hearing was scheduled from January 13 to 24 of this year but the parties informed the arbitration tribunal about their intent to stop proceedings on January 10.
This is not the first arbitration proceedings between Gazprom and Uniper on gas prices. In March 2016, Gazprom and Uniper agreed to halt arbitration proceedings and adapt prices of gas supply contracts for coming years.
On Thursday, Gazprom said excessive supplies of liquefied natural gas (LNG) as well as brimming storage have put pressure on natural gas prices in Europe and Asia, dimming forecasts for exports.
Demand for energy has been dampened by warm winter weather in Europe as well an outbreak of a new coronavirus in China, which further pressured Asian LNG spot prices LNG-AS to a record low below $3 per million British thermal units (mmBtu) last week.
Elena Burmistrova, head of Gazprom’s exports unit, told a meeting of investors in London that times were hard for all gas suppliers.
“I spoke to our LNG traders this morning, they confirmed the volumes which are ‘on the water’, and those are unsold volumes, are around 20 million tonnes,” she said when asked for Gazprom’s export forecast.