Igor Sechin Participates in the Ceremony of the Start of On-exchange Gas Trading at SPIMEX
Rosneft Head, Chairman of the Management Board of SPIMEX Igor Sechin participated in the ceremony of the start of on-exchange gas trading at the Saint-Petersburg International Mercantile Exchange (SPIMEX).
On-exchange trading was organized in pursuance of the decisions of the of the President of the Russian Federation.
The start of gas on-exchange trading is one of the key events for the Russian gas industry of this year, as it will guarantee transparency of pricing and resource availability. Also, all market players will have equal conditions due to the common procedure of gas marketing.
The participants of gas exchange trading are: Rosneft, Gazprom Mezhregiongaz, Novatek, as well as leading enterprises of electric power, agrochemistry, and metallurgy – Fortum, Enel Russia, KES-Trading, Severneft-Urengoy, INTER RAO and others.
The terms of trading provide automatic access to gas transport system if the deal for gas supplies is closed. Moreover, stock trading helps to minimize the risks, associated with the execution of contract obligations by the counteragents. At the same time this procedure of gas marketing will allow the Company to boost its contract portfolio and widen the client base.
At the ceremony Igor Sechin said: “We had only one price guideline until today – the price regulated by the Federal Tariff Service. Now we can say that there is another alternative transparent instrument for determining “fair” market value of gas”.
SPIMEX President Alexey Rybnikov emphasized, that “within short time a huge amount of work has been done. The peculiarity of gas trading demands elaboration of a normative base and making significant changes in hardware and software complexes of all participants of stock trading infrastructure. Federal Anti-Monopoly Service, bank of Russia and the Ministry of Energy provided significant help in coordination of all procedures to start organized gas trading. Later the Stock is planning to start trading with delivery regime termed for decade and the following day, as well as extend the number of regions and industries, participating in trading”.
Notes for Editors:
On June 4, 2014 following the results of work of Presidential Commission of the Russian Federation for Strategic Development of the Fuel and Energy Sector and Environmental Security it was instructed to organize start of on-exchange gas trading.
Today more than 95% of domestic oil products stock trade volume is performed via SPIMEX. In last three years (2011-2013) the trading volume exceeded 915 bln rubles and this parameter is growing every year: in 2013 it was 13.6 mln tons of oil products, in the current year it is forecasted to be over 16 mln tons (in 2012 – 257.9 bln rubles). The number of participants grew to 1500 companies and organizations.
As part of the stock trading it is planned to sell up to 35 bln cubic meters of gas per year, which is comparable to annual consumption of such countries as the Netherlands or Spain.
Rosneft
Information Division,
October 24, 2014