Novak described the timing of the decision of liberalization of the gas market of Russia

Novak described the timing of the decision of liberalization of the gas market of Russia

The issues of liberalization of the industry, according to energy strategy of Russia, will take place after 2025, said the Minister of energy. He noted that one of the main tasks in the near future is to address the issue of pricing for natural gas transportation.

MOSCOW, 22 Dec. Energostrategia Russia until 2035 in the sphere of the internal market of gas in the first phase, until 2025, provides for the development of competition and improvement of gas pricing, and only then addressing issues of liberalization of the industry, said Minister of energy Alexander Novak.

“Today, there is a position that should be a single export channel, the gas transportation system remains in the “Gazprom” and so on. The discussions mainly relate to long-term prospects — in the next 20 years. The strategy has two stages: in the first ten years, to 2025, the focus will be on the development of competition, improvement of gas pricing. For the next ten years provided the conceptual possibility of further liberalization of the industry,” said Novak in an interview to the newspaper “Kommersant”.

According to the Minister, every five years the strategy is subject to adjustments. In the near future to decide the issue of cross-subsidy pricing for gas transport, as well as issues of guaranteeing suppliers in the regions, especially there where is not present “Gazprom”, and work “NOVATEK” and “Rosneft”.

According to Novak, the draft energy strategy will not be considered until the spring of 2016. “We wanted to finally take energostrategia until 2035 (it was planned to adopt in 2015)… the Document is ready, although conceived in the context of economic recession, very high volatility and unpredictability of prices. But considering the strategy the government decided to move next year because we need to understand the socio-economic development,” he said.

“Following the adoption of a long-term strategy we need to approve of the General scheme of development of the oil and gas industries, that the government’s plans for the first half. In General, the General scheme we have,” added the Minister.

Speaking of now discussing the concept of a supplier of gas, Novak said that various options were being considered. “Touches upon many important issues, first and foremost a reliable gas supply during the periods of passage of the maximum peak loads. This means that someone must have the reserves on production. Today these reserves is Gazprom, it it costs. The question of how to redistribute them among the participants of the gas market who will create such reserves to cover the peaks. If the reserves of “Gazprom”, it is possible that other companies could participate or have financial reserves in the form of reserves in the underground gas storages (UGS) or the free production capacities”, — said the Minister.