Rosneft reportedly comes up with plan to end Gazprom’s Russian gas export monopoly

January 31, 2014

Russian oil giant Rosneft has prepared a plan to abolish Gazprom’s monopoly for gas exports, a source in the industry familiar with the document told Itar-Tass on January 30. A source in the government confirmed proposals were under consideration, but no structured concept was yet on the table.

According to one of the sources, Rosneft suggests reform of the gas sector in two stages. At the preparatory stage the oil giant proposes an equal-profits price (equal domestic and export prices), provide market players with equal access to gas transportation system and implement a pilot project for access to export outlet.

Furthermore, the plan provides for turning the gas transportation system into a state-regulated independent company, setting up a gas exchange and giving all market participants opportunity to export gas.

“Since 27% of the market is held by independent gas producers, the issue is already high on the agenda,” said a source in the government.

Meanwhile, Rosneft’s official told Itar-Tass the company did not comment on the government’s decisions but executed them: “There are just no reasons to comment now.”

Copyright: Itar-Tass, 2014