By Vestnik Kavkaza
The growth of Russian gas resources could reach 900 billion cubic meters this year; it surpasses the expected indices of gas production by half. According to the Minister for Natural Resources and Ecology, Sergei Donskoi, “the main task is to provide simple reproduction of natural resources; reproduction of oil resources is also planned.” As a result of 10 months of the year, oil production in Russia reached slightly less than 450 million tons, gas production surpassed 500 billion cubic meters.
On December 11th at the international forum “Russian Gas 2014” the existence of the Russian gas industry under new economic conditions will be discussed. The goal of the forum is to detect the major challenges, tendencies and prospects of the gas industry.
“The economic situation is changing, both in our country and in the world. This influences the development of the gas industry,” Pavel Zavalny, the President of the Russian Gas Community, the Deputy Chairman of the State Duma Committee for Energy, says.
Representatives of the Ministry of Energy, the Ministry of Natural Resources, academies and leading gas companies, including NOVATEK, Rosneft, LUKOIL, Surgutneftegas and Gazprom, will speak at the forum.
Members of the board of Gazprom, the head of the Department for Working with the Authorities of Russia, Vladimir Markov, is ready to discuss all problems of production and the gas market development in Russia openly and publicly: “In recent years the dynamic of changes in the sphere is intensive, starting from using new technologies, such as low-tonnage gas liquefaction which is used for gasification of Russian regions, and ending with problems of objective optimal price formation for all Russian regions in which gas plays a significant role.”
Markov thinks that Russia has a problem of price formation: “Traditionally, price formation was provided according to zones which were established, depending on the remoteness from the main mine fields. At the same time, we have never worked in a so-called free price formation. The value of all the services provided by Gazprom on the territory of Russia is defined by the state represented by regulatory bodies – prices for gas, its transportation and domestic services which are provided by the group of companies of Gazprom. The share of the so-called “independent” producers is about 30%. They have a right to sell their products at free prices which are not regulated by the authorities. At the same time, they don’t have to provide any consumer with products who addresses them with a request. Gazprom has no such freedom: we have to provide any consumer with gas, if there is a technical opportunity of access at clear fixed prices. This leads to the fact that independent producers use the situation and choose the most marketable, payable consumers and in the most comfortable zones. They have an opportunity to gain big revenues which are similar to the revenues from gas export.” Markov thinks it is a problem and he urges to search for mechanisms of combining the interests of gas producers and consumers.
As for gas exports, at the moment one of the most relevant topics is construction of the gas pipeline system “South Stream”, which is falling behind schedule. According to Markov, the periods of the construction’s commencement were shifted by a month. “All necessary initial works have been completed – the development of the project, an ecological analysis license in the countries where construction will take place,” Markov said. He is sure that Western sanctions won’t influence the construction of the main part of the pipeline and it will be launched according to schedule.
