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Krymgaz in talks with Russian companies on cylinder gas supply

SIMFEROPOL, March 27, /ITAR-TASS/. The JSC Krymgaz is negotiating with Russian companies on the delivery of liquefied petroleum gas (LPG) in cylinders for the populated localities that are not equipped with natural gas supply infrastructure, the region’s First Deputy Minister of Fuel and Energy Vadim Zhdanov told a briefing on Wednesday.

“As of today, we in Crimea have about 180 tonnes of propane-butane - a reserve for some 10 days. There has been problems last year when Ukraine, it may be said, was mocking at Crimea, supplying to us 160 - 200 tonnes of LPG with the demand of 400 tonnes per month, and we could not get the gas for two or three months. How, I think, no problems will arise, a direct agreement will be concluded, and the liquefied gas will be delivered in the needed volumes,” Zhdanov said. He added that the price offered by Russian companies was acceptable.

According to Itar-Tass previous reports, the mechanism of LPG delivery to low-income population groups at state-regulated prices (cylinder has for cottages and private households) exists in the RF at present. The LPG price, set by the Federal Tariff Service (FTS) annually was 10058 roubles per tonne (without VAT) from July 1, 2013. Market prices for this fuel in 2013 had been two times higher, and in some regions in separate months reached 25 thousand roubles per tonne.

Since the beginning of 2014, Russian LPG producers have started to annually conclude long-term contracts with gas distribution organisations that are responsible for the fuel supply to the population. These contracts spell out the needed gas volume and gas prices that correspond to those set by the FTS. Under the contracts, the gas distribution organisations face penalties for taking lower gas volume.

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