Russian Gas Industry today and tomorrow. O.Buchnev, T.Shtilkind, NIIgazekonomika Institute

Transcription

1 Russian Gas Industry today and tomorrow O.Buchnev, T.Shtilkind,

2 Content 1. Russian Gas Industry and JSC «Gazprom» 2. Gazprom perspectives: - new projects - ways and goals of reforms 3. Internal gas market regulation issues 4. Gazprom and independent gas producers

3 1. Russian Gas Industry and JSC «Gazprom»

4 Russian Gas Industry in BCM * Gas production 620,2 632,8 JSC "Gazprom" 540,2 545,0 Independents and oil producers 80,0 87,8 Gas comsumption 375,5 379,4 Gas exports 183,9 195,2 into Europe 132,9 143,4 into former USSR republics 51,0 51,8 Gas transit 41,6 44,0 * preliminary figures

5 JSC «Gazprom» in * Gas production, BCM 540,2 545,0 Taxes payed, billion rubles 280,2 363,0 Investments, billion rubles 173,0 236,8 Gas exports into Europe, BCM 132,9 143,4 Gas sales within Europe, $ billion 16,5 17,8 * preliminary figures

6 Russian United Gas Transportation System

7 Russian UGTS scale Major pipelines, thousand km 153,8 Number of CS 263 Installed CS capacity, TWt 43,8 Number of UGS 24 UGTS provides: more than 98% of gas transport, 100% of gas exports and transit

8 2. Gazprom s perspectives: - new projects, - ways and goals of reforms

9 Pending Gazprom s gas projects Bogorodtchany-Uzhgorod trunkline construction within the frame of International Consortium for Control and Development of Ukrainian Gas Transportation System Yamal-Europe trunkline completion Middle Asia-Centre trunkline system reconstruction LNG projects development

10 Prospective Gazprom s projects Development of gas fields in the regions of Yamal peninsula, Ob and Taz inlets, Eastern Siberia and Far East, Shtockman field Construction of North-European pipeline Increase in annual gas production up to BCM in the year 2030 Adequate development of the UGTS to support internal and export gas supplies Implementation of large scale LNG projects

11 Ways of Gazprom s reforms Separation of non-specific assets and Gazprom s activities as different businesses Unbundling Gazprom s activities: production, transportation, processing, underground gas storage, services while keeping Gazprom as a integrated company Goals of reforms: Increase the level of transparency Cost reduction

12 3. Internal gas market regulation issues

13 UGTS owner and Third Parties In accordance with the Russian Gas Supply Law the owner of United Gas Transportation System is Gazprom Third Parties (or Independents) are companies which operate on Russian territory and have no gas transportation facilities

14 Unequal governmental treatment The prices on Gazprom s gas are set by the Federal Tariff Service The prices on gas of independent producers as well as on imported gas are not subject to regulation

15 Regulated wholesale gas prices 11 pricing zones Residential gas prices lower than industrial ones Gas prices for 1000 m 3 (excl. VAT): residential $20,7 - $27,4 industrial $22,1 - $41,4 Gas prices hardly cover production and transportation cost Gas prices do not correspond with transportation tariffs: sales are more profitable at short distances

16 Tariff policy Tariffs are set by Federal Tariff Service which has to take into account economically based cost and profit as well as the financial ability of gas transportation facilities owners to develop gas production, gas networks and underground gas storage facilities

17 Transportation tariffs Different for Gazprom s group companies and for independent gas producers Different for internal transportation and exports Depend on volumes and transportation distances Do not depend on routs, pipe diameters, load factors etc.

18 Transportation tariffs values Transportation tariff on gas transportation produced within Russia for independent producers is: - within Custom Union territory ~$0,7 for 1000 m 3 for 100 km (excl. VAT) - outside Custom Union territory ~ $0,9 Gazprom s corporate tariffs for its own gas lies in the range from $0,4 to $3,4 for 1000 m 3 for 100 km (excl. VAT)

19 Liberalisation and reliability Gas markets liberalization both in Russia and in the EU should not contradict with such Russian interests and Gazprom s priorities as: security and reliability of gas deliveries for Russian consumers ensuring of export gas supplies

20 4. Gazprom and independent gas producers

21 Common goals JSC Gazprom is responsible for secure and reliable deliveries of gas to Russian consumers and fulfilling Russian export obligations Independent producers contribute to Russian gas balance thus assisting Gazprom

22 Russian gas production ,1% 13,9% 76,0% 24,0% ОАО JSC «Gazprom» "Газпром" Независимые Independents

23 Internal gas market reforms Widening of free prices sector with the aim of liberalisation of gas prices Raising the regulated gas prices in order to cover expenditures and attract new investments Creating prerequisites for increase of the share of Independents in gas production Participation of independent producers in gas exports under the Single Export Channel

24 Prospective pricing policy Gas prices in the non-regulated sector of gas market should be determined by competition with the prices on alternative types of fuel (coal, oil, etc.) Gas prices in the regulated sector should be high enough to cover costs and attract new investments

25 Relations with independent producers The necessary prerequisites for increase the share of Independents in gas production: gas prices in the internal market high enough to cover costs and attract new investments the possibility of participation of independent producers in gas exports within the frame of the Single Export Channel nondiscriminatory access to UGTS with possible participation in financing the development of the gas transportation systems

26 General scheme of the Russian gas industry development The most important instrument to reconcile the interests of gas consumers, Gazprom and independent producers and to optimize the rate and scale of gas industry development Gazprom as the owner of UGTS has to ensure the access to the system for all market players in exchange for adequate legal and financial Independents guarantees of their intentions to take part in the General scheme implementation

27 Thank you very much for your kind attention!