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Putin instructed the government to establish exchange trade with natural gas
Material posted: Publication date: 23-07-2014

Until the end of December 2014. at the international commodity exchange in St. Petersburg (SPIMEX) should start an auction for the sale of natural gas, according to "Kommersant". In order to the government of the Russian Federation, issued following the meeting of the presidential Commission on fuel and energy complex, the necessity of "securing commitments for the delivery of purchased on the exchange gas to the final consumer as a matter of priority".

As explained by a member of the Board of SPIMEX Anton Karpov, the end of the year, the venue will be organized spot sales, and then the launch of futures contracts. The deadline set by the President, the top Manager considers realistic, given the fact that now "all the project participants will make every effort to be successful."

It is expected that soon after the start of trading time Gazprom will sell on the exchange to 17.5 billion cubic meters of gas per year, as many independent producers. Thus, in General, the exchange can take up to 10% of domestic gas sales. According to co-Director of Investcafe Grigory Birg, gas prices on the exchange generally will be lower than the contract taking into account declining demand and high supply.

The direct implementation of the project would now take the former head of Electronic trading platforms (ETP) of the company "Gazprom Mezhregiongaz", and nowadays the head of Department for organization of electronic forms of gas trade Alexander Petrov.

So far, the experience of organizing auctions for the sale of gas only from Gazprom. The auctions on ETP "Gazprom Mezhregiongaz" in accordance with the decree of the government of the Russian Federation began in 2006. and was held as an experiment. It was assumed that during the first year Gazprom and independent producers sell through the ETS by 5 billion cubic meters of gas, in the future, the volume of sales was scheduled to 7.5 billion cubic meters for each party. However, in 2008. the annual volume of gas sales via ETP amounted to 6,09 billion cubic meters, of which 3.1 billion cubic meters was sold to Gazprom and to 2.99 billion cubic meters - by independent producers. A delay in the planned indicators in Gazprom explained the shortage of gas in the transmission system in February-March 2008. and with the glut of gas market in the period from April to December.

Trading at the ETP have been suspended since January 2009. in connection with the termination of the RF government decree about carrying out the experiment.

During the work on the ETS it has sold more than 13.3 billion cubic meters of gas (of which 7.5 billion cubic meters of gas by Gazprom and 5.8 billion cubic meters of gas by independent producers) for a total amount of RUB 20.7 billion In 2007. through ETP gas bought consumers 31 region of Russia, in 2008. — 33. Over half of gas was delivered to consumers in the republics of Tatarstan and Bashkortostan, Sverdlovsk and Moscow regions.

Later it was reported that Gazprom carries out work aimed at the harmonization and adoption of RF Government resolution on the implementation of gas using exchange technologies.

The company viewed exchange trading as a market mechanism for optimization of gas sales to better meet consumer demand in different modes of delivery and forming objective and transparent display system on gas and the initial exchange of gas would serve the domestic market of Russia, and then, as the expansion of export capacities gas transportation and liberalization of gas markets in the CIS countries and the EEC, its activities will be distributed to foreign markets.

In mid-may 2014. the Board of Directors SPIMEX was headed by the head of "Rosneft"Igor Sechin, who replaced on this post of the first Vice President of Gazprombank Vladimir Tatsiy.

"At the moment, the exchange completed its establishment phase, has become a leader in the specialized segment – the market of petroleum products. However, much remains to be done - until 2018. SPIMEX has become a universal exchange holding company providing a full range of services. Another important task is the launch of trading on the internal market in natural gas, as well as the transition to futures trading volumes of hydrocarbons, provided transport facilities," he said after his inauguration as Governor.

We will remind that "Rosneft" intends to develop a gas area of its business. Already by 2020. the company, according to Sechin, has become the second largest gas producer in Russia and the largest independent player in the domestic Russian market, increasing gas production more than doubled to 100 billion cubic meters a year.

Eugene Kulykov


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