On December 17, 2005, Mezhregiongaz hosted a meeting of the Working group on development and realization of the Russian natural gas market concept chaired by Viktor Khristenko, Minister of Industry and Energy of the Russian Federation.
Valery Yazev, Chairman, the Energy, Transport and Telecommunications Committee of the State Duma, Mikhail Odintsov, Chairman, the Commission on natural monopolies of the Russian Federation Council, Alexander Ryazanov, Deputy Chairman, Gazprom Management Committee, Kirill Seleznev, Head of the Department of Marketing and Processing of Gas and Liquid Hydrocarbons, Gazprom, Director General of Mezhregiongaz, Yelena Karpel, Head of the Department of Economic Expertise and Pricing, Gazprom, representatives of the Ministry of Industry and Energy of Russia, Ministry of Economic Development and Trade of Russia, the Federal Antimonopoly Agency of Russia, the Federal Tariffs Agency of Russia, Gazprom, RAO UES, Mezhregiongaz, independent gas producing companies, the Russian Gas Society, Gas Market Coordinator non-commercial partnership, representatives of energy experts community were present at the meeting.
Before the meeting commenced, the functioning of Mezhregiongaz’s Electronic trading facility was explained to the meeting’s participants. The system consists of four main blocks – one designated for trading by large industrial consumers and regional gas companies, corporate communication system of dispatching control over gas supplies, the system of servicing regional companies of small and medium sized natural gas consumers.
The meeting’s participants observed trading joined by buyers representing six regions of the Russian Federation – Moscow, St. Petersburg, Moskovskaya, Leningradskaya, Orlovskaya and Lipetskaya oblasts. The trading was active, and the prices were 11-17% higher than the regulated prices.
During the meeting, the issues of the Government of the Russian Federation’s proposed draft executive order “On experimental free (contractual) price gas trading” were discussed. The decision was made to present the draft for governmental approval and to create the necessary conditions to hold experimental gas trading at Mezhregiogaz’s Electronic trading facility in 2006.
In order to facilitate active participation of independent gas producers and large gas consumers in the trading, the corresponding ministries were authorized to hold constant monitoring of Mezhregiogaz’s Electronic trading facility in 2006.
The Working group on development and realization of the Russian natural gas market concept was established by authorization of the Ministry of Industry and Energy on August 9, 2005. The objective of the group is to coordinate federal authorities’ actions within the framework of development and realization of the Russian natural gas market. The group consists of the representatives of the corresponding ministries and agencies of the Russian Federation, Gazprom, independent gas producers, other business and non-governmental bodies. The group is chaired by Viktor Khristenko, Minister of Industry and Energy of the Russian Federation.
The draft executive order “On experimental free (contractual) price gas trading” was prepared by the Ministry of Industry and Energy’s experts with Gazprom’s participation. The draft stipulates holding experimental gas trading based on free prices and according to the “5+5” scheme. According to the draft, Gazprom and its affiliates will be able to sell 5 bcm of gas at free prices in 2006. The same gas volume may be sold at free prices by the independent gas producers. The experimental trading will be held at Mezhregiogaz’s Electronic trading facility which has been functioning since 2002.
In August 2005, Mezhregiongaz’s experts completed the development of the second generation of facilities for automatic clearing and paperwork circulation which considerably improved the trading facility’s operational efficiency.
Mezhregiongaz is a wholly owned subsidiary of Gazprom. Its major task is to facilitate natural gas supplies to the consumers in Russia.