German energy group RWE expects a settlement with Gazprom during first half 2013 on its long-term gas imports from the Russian producer, the company said Monday.
A spokeswoman for the company confirmed that a settlement was expected in the first half of the year.
RWE's chief financial officer Bernhard Guenther was quoted in German newspaper Boersen-Zeitung at the weekend saying he expected a solution to RWE's dispute with Gazprom during the period. He said that there could be compensation covering around three years of supplies, amounting to "a substantial sum." The RWE spokeswoman did not say what sort of settlement was expected.
She said: "Bernhard said that he expects a settlement in the first half of 2013, but he did not talk about an out-of-court settlement only but also mentioned the on-going arbitration procedure."
RWE started formal arbitration over the long-term gas import contracts in 2010. RWE, like many other major European gas importers, was concerned that the price it was paying for its supplies under long-term, oil-linked contracts, was uncompetitive against gas prices in the spot gas market.
Most other major buyers, including Germany's E.ON, have already agreed settlements with Gazprom on similar cases outside the formal arbitration procedure.
In July 2012 E.ON announced a Eur1 billion boost to its half-year results from its settlement with Gazprom, including adaptation of prices going back to the fourth quarter of 2010.
