04.07.2022, 17:04
Gazprom Proposes to Develop a Mechanism for Coordinating the Export of Pipeline Gas and LNG
Source: OREANDA-NEWS
OREANDA-NEWS Gazprom proposes to develop a mechanism for coordinating the export of Russian pipe gas and LNG due to the fact that currency competition has arisen in the current market conditions. This initiative was announced by Kirill Polous, Deputy head of the Gazprom department, during a round table of the State Duma Committee on Energy, at which the Energy Strategy of the Russian Federation until 2050 was discussed.
"As for exports, we have already spoken and proposed this initiative, but, unfortunately, it has not materialized to date - this is a matter of coordinating the export of pipeline gas and LNG. In our opinion, in the current conditions, with the introduction of counter-sanctions measures regarding the special procedure for the fulfillment of obligations by foreign buyers to Russian suppliers (Order of the President of the Russian Federation N172), the development and implementation of this mechanism is becoming increasingly important strategically for the country. And now such a mechanism needs to be introduced more than ever. Translating this into Russian, pipeline gas is traded with European unfriendly counterparties for rubles, but this measure does not apply to the LNG segment, and there is some kind of currency competition between suppliers," Polous said.
He also noted that one of the possible methods of regulation is customs duty, the creation of some economic incentives for the direction of this gas not in the west, but in the east direction. "Since the start of LNG production in the northern regions, more than half of the LNG has been delivered to the regions of the supply of duty-free pipe gas, unlike LNG," he stressed.
Polous also said that Gazprom stands for the principle of universality in granting access to LNG exports, so as not to make changes to legislation every time. "It seems to us necessary to establish universal requirements for LNG exporters, which is provided for by the national program of socio-economic development of the Far East for the period up to 2024 and the prospect up to 2035. For our part, we have already sent such proposals to the Ministry of Energy," he added.
Currently, amendments to the gas export law are mostly written in complex formulations for certain subsidiaries of NOVATEK, which has planned to implement several LNG projects, and Yamal LNG has already built.
"As for exports, we have already spoken and proposed this initiative, but, unfortunately, it has not materialized to date - this is a matter of coordinating the export of pipeline gas and LNG. In our opinion, in the current conditions, with the introduction of counter-sanctions measures regarding the special procedure for the fulfillment of obligations by foreign buyers to Russian suppliers (Order of the President of the Russian Federation N172), the development and implementation of this mechanism is becoming increasingly important strategically for the country. And now such a mechanism needs to be introduced more than ever. Translating this into Russian, pipeline gas is traded with European unfriendly counterparties for rubles, but this measure does not apply to the LNG segment, and there is some kind of currency competition between suppliers," Polous said.
He also noted that one of the possible methods of regulation is customs duty, the creation of some economic incentives for the direction of this gas not in the west, but in the east direction. "Since the start of LNG production in the northern regions, more than half of the LNG has been delivered to the regions of the supply of duty-free pipe gas, unlike LNG," he stressed.
Polous also said that Gazprom stands for the principle of universality in granting access to LNG exports, so as not to make changes to legislation every time. "It seems to us necessary to establish universal requirements for LNG exporters, which is provided for by the national program of socio-economic development of the Far East for the period up to 2024 and the prospect up to 2035. For our part, we have already sent such proposals to the Ministry of Energy," he added.
Currently, amendments to the gas export law are mostly written in complex formulations for certain subsidiaries of NOVATEK, which has planned to implement several LNG projects, and Yamal LNG has already built.
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