Russia's Gazprom expects EU gas market to recover from third quarter - Rencap

A logo of Gazprom Transgaz Tomsk is pictured at the Atamanskaya compressor station, facility of Gazprom's Power Of Siberia project outside the far eastern town of Svobodny

MOSCOW (Reuters) - Gazprom expects European gas demand, dented by the coronavirus crisis, to start recovering from the third quarter, Renaissance Capital wrote after a call with the Russian gas giant.

Renaissance Capital wrote in a note that Gazprom said the drop in European demand accelerated in recent weeks due to the coronavirus-related lockdowns and warm weather, while power generation demand did not fall due to switching from coal

"With China resuming LNG imports in March, Gazprom expects the lockdown roll-over will result in European gas markets resuming growth in 3Q-4Q 2020," Renaissance Capital said.

It also said in Wednesday's note that Gazprom <GAZP.MM> had said on the call that it wanted to achieve positive free cash flow this year and was committed to its new dividend policy.

Gazprom did not immediately respond to a request for comment.


(Reporting by Anastasia Lyrchikova; Writing by Vladimir Soldatkin; Editing by Alexander Smith)