The head of FAS called “disgraceful” conditions of competition on the Yamal Peninsula

The head of the Federal Antimonopoly service (FAS) Igor Artemyev has informed that Department will check for violations of the competition conditions of the auction for three gas fields on the Yamal Peninsula. We are talking about the Storm, Verneriauskas and West Seyakhinsky the subsoil auctions for which the Agency announced June 30. Under the terms of the bid to participate in the auction can only be a company that already has the licenses for gas extraction in Yamal and Gydan Peninsula, as well as processing facilities in the region. Under these conditions only hits NOVATEK, which is building the Yamal LNG plant, Yamal LNG, and its subsidiaries.

“I have not heard about it, but if so, then we must intervene. This is a limitation of competition, it is a disgrace. We will check,” said Artemyev, answering the question TASS on the sidelines of the UN Conference on trade and development, held in Geneva.

“Auctions for the subsoil areas declared in accordance with the decree of the government. Earlier the document was approved by all relevant departments”, — said RBC official representative of the Ministry of natural resources Nikolay Gudkov (Rosnedra included the Ministry of natural resources). He added that the Yamal projects have a priority value for the state in the development of liquefied natural gas production to compete on the world market.

The representative of NOVATEK as of the time of publication of the material did not respond to a request to RBC.

Bids for the auction are accepted until 4 August, the auction scheduled for August 25. One-time payment for Verkhnetulomskoe and West Sechinskie field is set at the level of 5.84 billion rubles for Storm — level 945,17 mln Reserves of gas on a Stormy amount of 7.92 billion cubic meters (C1+C2), inferred resources 286,8 billion cubic meters (D1). Stocks Verkhnetarasovka and West Sethiscore areas are estimated at 309.9 billion cubic meters of gas (C1+C2), resources — 285,3 billion cubic meters (D1).

NOVATEK is building a plant to produce liquefied natural gas, Yamal LNG capacity of 16.5 million tons per year on the resource base of South Tambeyskoye field, the first phase with a capacity of 5.5 million tonnes will be commissioned in late 2017. The company also plans other LNG projects on the Yamal Peninsula and Gydane, for example, “Arctic LNG 2” on the basis of Sarmanovskogo and Geophysical fields. At the end of June the financial Director of NOVATEK mark following members were elected to said about the company’s plans to become the largest LNG exporter in the world in ten years. At the end of March as part of the Arctic forum in Arkhangelsk, Russian President Vladimir Putin promised the Chairman of the Board and co-owner of NOVATEK Leonid Mikhelson, the state will encourage the development of the project.

Head of competition practice of legal company Sameta Andrey Astanin believes that the terms of the auction for three gas fields on the Yamal Peninsula may contain signs of violation of competition. However, he doubts that the service will challenge these conditions if you already agreed to them previously. Astanin believes that to conduct an auction on these conditions is a political solution agreed by the government.