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Russia's Rosneft hopes to get access to European natural gas exports

Russia's largest independent gas producer Novatek is seeking permission to export gas to Europe

© Alexandra Mudrats/ITAR-TASS

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No decision made on granting Novatek access to European gas exports — Kremlin

MOSCOW, March 2. /TASS/. Russia’s top oil producer Rosneft hopes to get an opportunity to export gas to Europe, similar to Novatek, the company’s official representative and vice president Mikhail Leontyev told TASS Wednesday.

"Now we assume Rosneft as a major budget revenue generating company will receive opportunities as good as Novatek. We hope for it very much and see no reasons to be denied once again," he said.

Kremlin spokesman Dmitry Peskov did not give comments regarding discussion over potential access of Novatek to European gas exports, though he stressed out that no decision regarding the issue has been made yet. "No decisions have been made yet regarding the issue," Peskov said Wednesday when commenting media reports that the company had applied to President Vladimir Putin seeking permission to export gas to Europe.

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Vedomosti business daily wrote earlier that Novatek is seeking permission to export gas to Europe via its whole-owned subsidiary Novatek Gaz & Power Gmbh (NGP). In a letter to President Putin obtained by the newspaper Russia’s Energy Minister Alexander Novak said that in accordance with President’s direction the ministry has considered Novatek’s application on gas export supplies to Europe via Gazprom Export "retaining the principle of a single export outlet".

In 2015, the trader contracted 3.1 bln cubic meters of gas, with 0.7 bln cubic meters being Russian gas. According to Novak, NGP could purchase all gas for European consumers in Russia, which will increase the country’s gas export by 2.4 bcm per year and add 9.4 bln rubles to the budget as export duties. Currently Novatek purchases gas supplied by Gazprom at European hubs.

According to the data published by the Central Control Administration of the Fuel and Energy Complex, Novatek boosted its gas output by 5% in February 2016 year-on-year to 5.489 bln cubic meters, .

Rosneft gas production increased by 8.7% to 5.286 bln cubic meters, Gazprom Neft reported a 15.6% surge to 2.552 bln cubic meters of gas while Lukoil boosted its gas output by 4.2% in the period to 1.516 bln cubic meters, statistics said.

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