FAS PROPOSES TO TRANSFER INDUSTRIAL GAS CONSUMERS TO PRICES OF REGIONAL STOCK INDICES

This will create liquid indicators of prices for natural gas and LPG

After establishing the minimum volume of natural gas sales and the formed market price indicators, FAS Russia suggests industrial consumers to use regional stock indices. It is expected to switch over to them in 2024.

According to FAS Russia, transparency of the mechanism of price formation in the market and their predictability are important for gas consumers. This opportunity is provided by the appearance of an exchange index.

It allows to form a convenient and transparent decision-making mechanism: to choose a method of purchasing gas (on- exchange or over-the-counter contracts), as well as a balance point and conditions that are more appropriate to the needs of buyers.

Another area of development of regional indices is the organization of on-exchange trading with delivery for any month in a calendar year, that is, delivery futures. At the first stage, FAS Russia suggests considering the possibility of launching supply contracts with terms from two to seven months.

The advantage of such a mechanism is the ability to plan purchases in the long term using a transparent pricing mechanism. Gas consumers on the exchange will be able to guarantee the supply of energy in a certain month at a fixed price.