27.04.2007, 07:11
FAS Russia: Expert Council on Developing Competition on the Natural Gas Market
OREANDA-NEWS. On April 23, 2007 the latest meeting of the Expert Council on Developing Competition on the Natural Gas Market, of the Federal Antimonopoly Service (FAS Russia), took place, brining together over 40 representatives of independent gas producers, oil companies, "Gasprom" OJSC, unions and associations, consultancies, and independent experts as well as representatives of the federal authorities, reported the press-centre of FAS Russia.
The meeting focused on the following two issues: "Engaging Gas Producers in Export Gas Supply" and "Using Natural Gas as Fuel".
Regarding the first issue - "Engaging Gas Producers in Export Gas Supply", it was noted that under the Federal Law "On Natural Gas Export", exclusive export rights are given to an organization which owns a unified gas supply system or its daughter company, if an organization - owner of a unified gas supply network - controls 100% of its statutory capital".
Administration of the Law, however, raised a number of questions.
Members of the Expert Council made a decision to draft amendments to the Federal Law "On Natural Gas Export", particularly, in terms of narrowing the scope of the Law. The amendments will be applicable to the natural gas only and not to the LHCG (liquefied hydrocarbon gases), being gas products.
As for the export of natural gas, the meeting confirmed the need to draft the Regulations on the access of independent gas producers to the integrated export channel and obtaining appropriate share of the export revenue.
The Expert Council discussed the access criteria to the export revenues - amount of gas produced and delivered to the Unified gas supply system, and the ratio of the amounts of gas supplied to the domestic market at regulated and unregulated prices.
It also covered the subject of developing the system of agreements related to the access to a unified export channel, including the single buyer and agent agreements schemes.
The above listed, as well as some other issues will be thoroughly studied for the purposes of drafting the legislation on amending the Federal Law "On Natural Gas Export" as well as the appropriate Resolution of the Government of the Russian Federation.
FAS Russia will be charged with the above task with a one-month deadline, after which the drafts will be submitted for consideration of the interested authorities and consultations with the expert community. At the end of summer - beginning of autumn FAS Russia will forward its proposals to the Russian Government.
Regarding the second item - "Using Natural Gas as Fuel", the Council noted that the existing decision-making procedures are obsolete and conducive to violations of the antimonopoly legislation. Therefore, the antimonopoly authority took initiative and prepared a new draft of the resolution as part of its programme on developing the gas market.
The Expert Council supported the idea of devising such documentation and gave positive preliminary evaluation of the work carried out by FAS Russia jointly with the Ministry of Industry and Energy, the Ministry of Economic Development, Gasprom and gas consumers on drafting the appropriate Resolution of the Government of the Russian Federation.
The Expert Council made proposal on improving the document as well as further work. According to the Council members, the document must account for the work undertaken on drafting the Resolution on "GAS Balance Formation" as well as the decision-making mechanisms on the balancing fuel and energy resources and gas prices liberalization for the period up to 2010-2011.
Decision-making on the issue of using gas as fuel should reach completion by signing and executing the agreement "On Technological Connection to Gas Networks". In addition, requirements to the connection procedures must be differentiated depending on the category of gas consumers and the amount and mode of gas consumption. The procedures should be simplified to the maximum for the population and household consumption.
It is necessary to look at the issue of technical connection payment as well as s number of other proposals that FAS Russia should take into consideration drafting an appropriate resolution.
FAS Russia will finalize the draft within a month and forward the document to the interested authorities and agencies as well as to the experts. It is planned to be presented to the Government at the beginning of autumn.
Commenting on participation of independent gas producers in export supply, Anatoly Golomolzin, Deputy Head of FAS Russia, stated: "None of the meeting participants objected "the unified export channel" in principle. In line with the antimonopoly legislation, such a solution meets the permissibility criteria, taking into consideration the need to increase competitiveness of the Russian gas on the foreign markets. At the same time state regularization of the access arrangements to the "the unified export channel" will facilitate protection of the interests of all agents on the gas market".
On the issue of "Using Natural Gas as Fuel", Deputy Head of FAS Russia mentioned, in particular, that "for gas consumers accessing the market constitutes a real problem, which is being experienced by the population, city-dwellers working on their countryside allotments in the summer time, energy producers and various industries. Delay in resolving this problem means impediment of economic growth. It is important that the expert community practically unanimously supports proposals on improving the situation".
The meeting focused on the following two issues: "Engaging Gas Producers in Export Gas Supply" and "Using Natural Gas as Fuel".
Regarding the first issue - "Engaging Gas Producers in Export Gas Supply", it was noted that under the Federal Law "On Natural Gas Export", exclusive export rights are given to an organization which owns a unified gas supply system or its daughter company, if an organization - owner of a unified gas supply network - controls 100% of its statutory capital".
Administration of the Law, however, raised a number of questions.
Members of the Expert Council made a decision to draft amendments to the Federal Law "On Natural Gas Export", particularly, in terms of narrowing the scope of the Law. The amendments will be applicable to the natural gas only and not to the LHCG (liquefied hydrocarbon gases), being gas products.
As for the export of natural gas, the meeting confirmed the need to draft the Regulations on the access of independent gas producers to the integrated export channel and obtaining appropriate share of the export revenue.
The Expert Council discussed the access criteria to the export revenues - amount of gas produced and delivered to the Unified gas supply system, and the ratio of the amounts of gas supplied to the domestic market at regulated and unregulated prices.
It also covered the subject of developing the system of agreements related to the access to a unified export channel, including the single buyer and agent agreements schemes.
The above listed, as well as some other issues will be thoroughly studied for the purposes of drafting the legislation on amending the Federal Law "On Natural Gas Export" as well as the appropriate Resolution of the Government of the Russian Federation.
FAS Russia will be charged with the above task with a one-month deadline, after which the drafts will be submitted for consideration of the interested authorities and consultations with the expert community. At the end of summer - beginning of autumn FAS Russia will forward its proposals to the Russian Government.
Regarding the second item - "Using Natural Gas as Fuel", the Council noted that the existing decision-making procedures are obsolete and conducive to violations of the antimonopoly legislation. Therefore, the antimonopoly authority took initiative and prepared a new draft of the resolution as part of its programme on developing the gas market.
The Expert Council supported the idea of devising such documentation and gave positive preliminary evaluation of the work carried out by FAS Russia jointly with the Ministry of Industry and Energy, the Ministry of Economic Development, Gasprom and gas consumers on drafting the appropriate Resolution of the Government of the Russian Federation.
The Expert Council made proposal on improving the document as well as further work. According to the Council members, the document must account for the work undertaken on drafting the Resolution on "GAS Balance Formation" as well as the decision-making mechanisms on the balancing fuel and energy resources and gas prices liberalization for the period up to 2010-2011.
Decision-making on the issue of using gas as fuel should reach completion by signing and executing the agreement "On Technological Connection to Gas Networks". In addition, requirements to the connection procedures must be differentiated depending on the category of gas consumers and the amount and mode of gas consumption. The procedures should be simplified to the maximum for the population and household consumption.
It is necessary to look at the issue of technical connection payment as well as s number of other proposals that FAS Russia should take into consideration drafting an appropriate resolution.
FAS Russia will finalize the draft within a month and forward the document to the interested authorities and agencies as well as to the experts. It is planned to be presented to the Government at the beginning of autumn.
Commenting on participation of independent gas producers in export supply, Anatoly Golomolzin, Deputy Head of FAS Russia, stated: "None of the meeting participants objected "the unified export channel" in principle. In line with the antimonopoly legislation, such a solution meets the permissibility criteria, taking into consideration the need to increase competitiveness of the Russian gas on the foreign markets. At the same time state regularization of the access arrangements to the "the unified export channel" will facilitate protection of the interests of all agents on the gas market".
On the issue of "Using Natural Gas as Fuel", Deputy Head of FAS Russia mentioned, in particular, that "for gas consumers accessing the market constitutes a real problem, which is being experienced by the population, city-dwellers working on their countryside allotments in the summer time, energy producers and various industries. Delay in resolving this problem means impediment of economic growth. It is important that the expert community practically unanimously supports proposals on improving the situation".
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