Energy Ministry to develop plan for exchange trading of gas in 2013
MOSCOW. Oct 19 (Interfax) - Russia's Energy Ministry hopes to develop a plan for exchange trading in gas in 2013, Deputy Energy Minister Pavel Fyodorov told journalists on Friday.
"We are now in the development stage for the conception [for exchange trading in gas]," he said, adding "I think that the conception will definitely be outlined in 2013. It's start time depends on the market."
Fyodorov added that organization of exchange trading in gas needs more than one government order. "It requires an inter-ministerial agreement, changes to the operational structure at key gas companies, and changes to several legal acts. One order isn't enough," he said.
In April, the Russian government approved the order "On the sale of natural gas on commodities exchanges". The document allows Gazprom to sell up to 15 billion cubic meters of gas on commodities exchanges in 2012, and up to 17.5 bcm starting in 2013 but no more than what is sold on exchange by independent producers. Therefore, exchanges could support up to 10% of the Russian internal gas balance (361.5 bcm last year).
Two exchanges hold the right to organize gas trading, the MICEX and the St. Petersburg International Mercantile Exchange (SPIMEX). Representatives of the SPIMEX earlier said that the exchange hopes to start gas trading next year.
However, Gazprom believes that the government order for gas trading needs additional work. The document allows the company to sell gas only on commodities exchanges. However, Gazprom has requested permission for the physical trade of gas on LLC Gazprom Mezhregiongaz's electronic trading system, arguing that trading gas separately from the production and transport dispatch system is impossible.
Electronic gas trading in Russia existed for just over two year between 2006 and 2008. Trading was halted since the Energy Ministry was unable to put forward an order through the government for continuing trade.
Commenting on exchange trading in oil, Fyodorov said that there is an order on regularity and balance in exchange trading in oil.
"The ministry's position is that there shouldn't be oil in the joint order with the FAS [Federal Antimonopoly Service]," he said.
It was earlier reported that the Energy Ministry and FAS' joint order in its initial version, which sets the minimum volume of exchange sales, the requirements for both oil and petroleum products were set. The latest version of the order does not contain requirements for exchange sales of oil.
"We hope to see the development of a fluid exchange market for oil in the long-term. But this should be done gradually. We think it would be impossible to decide on a high rate [for oil sales on exchange] for oil companies with complex logistics as of tomorrow," he said.