Russia Rosneft wants to start test gas deliveries to Europe in ‘16

MOSCOW, Jul 23 (PRIME) -- Russian oil major Rosneft has asked the Energy Ministry to allow it and other independent gas producers to start test supplies to Europe in 2016 as Gazprom’s agent, gas market development strategy proposals seen by PRIME late Thursday said.

“In 2015, we shall arrange a schedule permitting independent producers to begin test supplies of gas to Europe under a limited quota on the basis of an agent agreement with Gazprom Export, we shall elaborate a mechanism of government control over such supplies to prevent competition with the gas sold under Gazprom’s contracts. And in 2016 we shall start test supplies,” the company said.

A source in the ministry told PRIME that the strategy had arrived.

Rosneft’s proposals are now being studied in the government and by companies, a Rosneft official told PRIME. The goal of the strategy is to “allow Russia not only retain but to raise the share on the global gas market,” he said.

The company also wants independent gas producers’ participation in Gazprom’s Turkish Stream project. Participation on other gas makers could help Gazprom reduce costs, Rosneft said.

According to the letter, Rosneft offers to consider selling Gazprom’s exports affiliate to other shareholders in 2019–2022. Independent producers must get access to gas exports revenue at this stage, while domestic prices should be liberalized.

Rosneft proposed full liberalization of Russia’s gas market, including exports, but wants to retain state control and quotas in 2023–2025.

Gazprom must spin off its division owning gas storage facilities in 2025, Rosneft said. Storage and pipeline capacities must become freely accessible after auctions and information about free capacities must be transparent.

The liquefied natural gas (LNG) market must continue liberalization in 2016; in particular, exports rights must be arranged for independent producers who carry out strategic projects, as follows from the strategy.

Gazprom earlier took a defensive stance against such proposals. The oil company, which also wants to boost its gas production, was not allowed to use Gazprom’s Sila Sibiri pipeline to carry gas to China. Gazprom CEO Alexei Miller said that Rosneft’s access would violate contract terms with China.

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