Russian Energy Ministry might cancel daily flexibility for gas off-take
MOSCOW. July 11 (Interfax) - The Russian Energy Ministry, gas giant Gazprom and gas consumers are discussing the possibility of abolishing the standard that gives users permission to take 10% more or 20% less gas than contracted with Gazprom on certain days.
Deputy Energy Minister Kirill Molodtsov told reporters that "active consultations with consumers, active consultations with Gazprom and independent producers on this topic are still under way; we'll discuss it another two or three months."
This document was adopted in a package of anti-crisis measures to support the Russian economy. However, it fundamentally changed the Russian gas market - consumers completely satisfied their needs using Gazprom's gas. Independent producers were left with nothing but to sell their gas at a discount to Gazprom's. This, in turn, caused consumers to shift from Gazprom to its competitors. The cancellation of the '+10% -20%' flexibility also limits possibilities for the development of organized gas trade.