MOSCOW, July 19. /TASS/. Gazprom has probably permanently lost 65-75% of its historical share on the European gas market, BCS World of Investments said in a report. Meanwhile, gas prices in the European Union keep falling and they may plunge further at the end of the summer due to overstocked underground storage facilities.

Earlier, the board of directors of Gazprom approved the company’s long-term development strategy for 2024-2033, as well as instructed head of the holding Aleksey Miller to exclude the share on the European gas market from the strategic planning system.

"We expect prices to recover to $600 per 1,000 cubic meters in the 2023-2024 heating season, though without a notable increase in volumes, exports will most likely stand at only $1.4 bln per month, down 60% compared to the average from 2015-2019. In the long term, Gazprom has probably lost 65-75% of its historical share on the European market forever, while gas prices will be falling slowly, reaching an average of less than $400 per 1,000 cubic meters," the report said.

With gas storage facilities being filled quickly, prices at hubs may plunge at the end of the summer, experts at BCS World of Investments believe. Hub prices have already fallen from $1,500 per 1,000 cubic meters in the middle of December to the current level of slightly over $300 per 1,000 cubic meters.

As far as Gazprom’s export revenues are concerned, the holding’s gas exports to Europe amounted to $8 bln per month in 2022, which is 2.4 times higher than in 2015-2019 ($3.3 bln per month) despite a decrease in supply volumes by 50%. However, this year monthly revenues have dropped to $1.9 bln, with even this amount being propped up by high prices in Q1, the report said.

"In June, with sales prices at around $450 per 1,000 cubic meters, Gazprom’s export revenues probably amounted to only $1 bln, which is 70% lower than the average level from 2015-2019," analysts stressed.

Gazprom's net profit under International Financial Reporting Standards (IFRS) decreased by 41.4% to 1.226 trillion rubles ($15.29 bln) in 2022. Gazprom’s production fell by 20% in 2022 to 412.6 bln cubic meters, while exports to non-CIS countries dropped by 45.5% to 100.9 bln cubic meters.