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Russia has no plans of letting independent producers export pipeline gas yet — official

March 23, 2016, 17:05 UTC+3 BOAO

Russia's largest independent gas producer Novatek has asked the authorities to allow it to export gas to Europe via Gazprom Export

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© Maxim Slutskiy/TASS

BOAO /China/, March 23. /TASS/. There are no plans to grant access to pipeline gas exports to independent producers yet, Russia’s Deputy Prime Minister Arkady Dvorkovich said Wednesday.

"Each gas producing company wants to export gsa, but our decision has not changed - Gazprom (exports) pipeline gas and decisions are made individually regarding LNG. There are still no plans to unbundle the transport component, no such decision has been made," he said.

Novatek and Rosneft have applied to the government asking for an access to export pipeline gas to Europe. This came after the companies succeeded in receiving access to export LNG from their projects.

As was reported earlier with reference to head of Novatek Leonid Mikhelson, the company is in talks with Gazprom Export over the purchase of 2-3 bln cubic meters of gas for its customers in Europe, which would increase the share of Russian gas on the market. Also, Rosneft is asking for permission to export 7 bln cubic meters of gas to Europe with no middlemen involved, in order to sell it to the British BP, according to RBC business daily. Last year Rosneft made a memorandum of intent with one of foreign companies, stipulating sale of Russian gas under the condition that it receives the right to export it.

Earlier, Vedomosti newspaper reported that Novatek asked the authorities to allow it to export gas to Europe via Gazprom Export. The publication referred to the letter from Energy Minister Alexander Novak to President Vladimir Putin dated February 18. According to the letter, Novatek asked the authorities to allow its Swiss trader Novatek Gaz & Power Gmbh (NGP, 100% owned by the Russian company) to supply gas produced by Arcticgaz (JV of Novatek and Gazprom Neft) to European consumers. At the end of 2015 the trader made a contract for 3.1 bln cubic meters of gas, of which 0.7 billion cubic meters were from Russia. According to the letter, NGP could buy all gas for European consumers from Russia and as a result Russian gas exports to the EU would grow by 2.4 bln cubic meters per year. The idea is that Gazprom buys gas of Arcticgaz at the price of export gas, according to the newspaper.

Later Energy Minister Alexander Novak confirmed he had sent the letter to the President though he added that the letter concerned the relations between Gazprom and Novatek on the domestic market. At the same time the Energy Ministry’s position regarding export of gas to Europe has not changed - the decision on export is taken by Gazprom.

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