7 Dec 2018 12:56

Resolution on LNG price liberalization to appear soon - Energy Ministry

MOSCOW. Dec 7 (Interfax) - The Russian government will issue a resolution on liberalization of prices for gas (where liquefaction has been used along the supply chain), the head of the Energy Ministry's oil and gas production and transportation department Alexander Gladkov said at the Gas Russia-2018 forum.

"This will provide strong impetus for use of LNG on the domestic market. This will make it possible to sell gas at its actual value, rather than a regulated price, taking into account all the costs incurred along the supply chain," Gladkov said.

Gazprom has been attempting to use low-tonnage LNG technologies in autonomous gasification. However, the low-tonnage LNG capacity that the group built in Perm territory, for example, cannot achieve the necessary return level because Gazprom can only sell its gas at regulated prices.

Russian Gas Society chief Pavel Zavalny noted that the Perm LNG costs 18,000 rubles per 1,000 cubic meters, while the price of gas on the pipeline network is no higher than 5,000 rubles. That is, LNG is comparable to LPG in price.

"This does not concern households. For now, a socially oriented position remains toward households. For now we are in favor of cross-subsidies between major consumers and households, including for LNG," he said.