Russian exchange market is ready to new volumes
“Developing exchange trading, it is expedient to increase exchange gas sale to 3 billion m³ of gas per month, and regulate only natural monopoly service for gas transportation via the gas-transportation system”
Said Head of FAS Department for Regulating the Fuel-and-Energy Complex, Dmitry Makhonin, speaking on 16 June 2016 at the joint session of the Gas Sub-Committee of FAS Exchange Committee with representatives of the Eurasian Economic Commission, the Republic of Belarus and the Republic of Kazakhstan.
The venue was ST Petersburg International Mercantile Exchange (“SPIMEX” JSC) devising the Common Gas Market Programme, provided for by the Treaty on the Eurasian Economic Union.
“Exchange trading has taken place in Russia since 2014. Every month around 2 billion m³ of gas are sold through the exchange, involving about 70 buyers and 10 gas sellers”, stated Dmitry Makhonin. According to him, the law of the Russian Federation allows non-residents to take part in trading, which emphasizes openness and importance for developing the exchange mechanisms for the gas market.
Gas is sold, in particular, through daily trading, which allows forming sustainable exchange indicators. Large companies include the exchange gas indicator in the price formulae on direct gas supply contracts.
The speaker emphasized: “It is also necessary to underline the importance of registering off-exchange contracts. Around 300 billion m³ of gas are currently registered in Russia, which facilitate formation of an off-exchange price indicator. FAS promptly controls information about transactions, preventing violations of the antimonopoly law and encouraging fair pricing”.
The participants noted practical experience of gas exchange trading in Russia, the significance of exchanging practical experience on the exchange trading with natural gas in order to advance the common gas market within the Eurasian Economic Union (EAEU).
A decision was made to draft the Road Map on gas exchange trading under the frame of developing the common gas markets in the EAEU.