OREANDA-NEWS. October 29, 2014. The 4th CREON International Conference took place in Moscow to discuss the market of liquefied hydrocarbon gases (LHG).

Participants were representatives of federal executive bodies, the largest Russian and foreign companies, as well as independent industry experts.

At the Conference the Head of the Department of the Federal Antimonopoly Service (FAS Russia) for Control over Fuel-and-Energy Complex, Dmitry Makhonin, made a report on “Antimonopoly Regulation of LHG market”.

Dmitry Makhonin described the main characteristics of this market in the Russian Federation and the measures undertaken by the antimonopoly authority to regulate the situation: “Together with its regional Offices, FAS began to monitor continuously wholesale and retail prices for liquefied hydrocarbon gases. The Antimonopoly Service intends to analyze the market annually”.

The FAS representative also pointed out that to form market pricing mechanisms in order to develop LHG exchange trading and register off-exchange transactions, the necessary legislative acts are devised that are going through a state-by-stage approval process with the interested federal executive bodies. The acts shall be adopted already this year.

Dmitry Makhonin also stated that under the legislative acts to be adopted, no less than 5% of the liquefied hydrocarbon gases used for household consumption and gas-motor fuel will be sold through exchange; economic entities producing over 100,000 tons LHG per year will be obligated to register transactions. Transactions over 30 tons shall be subject of registration.

According to the Antimonopoly Service, price arbitrage between indices of prices on competitive foreign markets, off-exchange transactions and exchange prices will form a domestic indicator of LHG prices.