PRESS: Gazprom suggests liberalization of local gas prices

MOSCOW, Apr 20 (PRIME) -- Russian gas giant Gazprom has suggested liberalization of gas prices for local industrial producers to raise its income from gas sales on the internal market, Kommersant business daily reported on Thursday citing materials of the state council’s meeting on energy issues that took place on March 30.

“Gazprom has suggested a gradual introduction of free prices for gas for industrial producers on the local market… The idea was articulated by Gazprom Deputy CEO Vitaly Markelov at a meeting of the state council,” Kommersant reported.

“He stressed that the gas industry ‘should shift its focus from an export-oriented model to the internal market.’ The top manager suggests starting with several pilot region,” it also reported.

Gazprom representatives have declined to comment.

Gazprom also suggested seasonal adjustments of 10–20% to wholesale gas prices, including a “winter premium” on gas, according to Kommersant.

The Federal Antimonopoly Service said that the primary conditions for such liberalization of prices is non-discrimination access to the gas pipeline infrastructure, and creation of a representable indicator under the existing mechanisms such as development of gas trading via commodity exchanges.

“Mr Markelov believes that independent gas producers obtain high-yield regions and displace Gazprom from the market so the price discrimination against the company should be eliminated starting from pilot regions. All the changes will take the market around a year or two, in his opinion,” Kommersant reported.

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