It is reported that Germany Wintershall Holding and France GDF Suez is in talks with Gazprom to gain greater flexibility in their long term contracts, in part to take advantage of lower prices on the spot gas market.

Mr Rainer Seele chairman of the German company said Wintershall wants to lower or delay volumes of gas its trading ventures buy from Gazprom under long-term deals.

He said that "We think that we should have flexibility to react to oversupply, so we are going to reduce the volumes. We don't want to reduce the volumes and give away, but to shift to take the volumes later."

Mr Seele said BASF unit Wintershall and Gazprom are shareholders in the Wingas, WIEH and WIEE trading ventures. Take-or-pay commitments will not be changed. He said that Wintershall started the talks with Gazprom in February and the negotiations take time because the gas market doesn't stand still. Volume flexibility will let Wintershall buy gas on the spot market, where prices are lower than under long-term contracts linked to crude price.

Mr Jean-Francois Cirelli deputy chairman of GDF Suez said that his company was also in talks with Gazprom and other suppliers on revising contracts. GDF Suez wants to adjust gas prices and volumes to reflect the current market situation.

Mr Xavier Perret the French utility general delegate in Russia said Gazprom, the world biggest gas producer, earlier this year agreed to adjust long-term supply contracts for some customers including E.On, during the economic crisis. GDF Suez buys about 80% of its gas under multiyear contracts.

Gazprom, which supplies about a quarter of Europe gas, agreed to give weight to moves in the spot market where prices fell last year, leading consumers to buy less fuel under long term contracts.

(Sourced from http://www.themoscowtimes.com)