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The situation around gas supplies to China along the eastern route remains tense
At a recent meeting of Deputy Prime Minister Arkady Dvorkovich, the Ministry of Energy was instructed to work out the issue of access of independent gas producers to the Power of Siberia gas pipeline in order to increase its exports to Chinese partners.
Energy Minister Alexander Novak said that the Ministry of Energy will prepare relevant proposals in January, but at the same time insisting that Gazprom remain the only gas exporter.
As previously reported in EastRussia, the Ministry of Energy has already offered the Government two different options for resolving the issue of the "Force of Siberia". The first of them assumes that Gazprom will expand the "Siberian Power" for independent producers by independently including costs in the transportation tariff. The second option involves the expansion of the "Force of Siberia" not only by the forces of Gazprom. It is about creating a consortium for the construction and operation of the pipe. In this case, it is possible to either build a second line, or in general a separate gas pipeline passing a new route. But in the latter case, Gazprom remains the only exporter, selling gas from independent producers under an agency agreement. The cost of gas in this case will be determined by the export price, less the export duty, the cost of transportation and the margin of Gazprom.
However, Gazprom has not yet agreed to any of these options. At the moment, the company buys gas from independent producers at the lowest price, which is set by the Federal Tariff Service for the domestic market and is about 75 dollars per thousand cubic meters. The price of gas under the contract with the Chinese CNPC is about 360 dollars. Gazprom says it will cope on its own with the provision of supplies to China with the help of development at its own fields - Kovykta and Chayandinskoye.
The initiative on selling gas to small companies in China is undoubtedly supported by Rosneft. Vladimir Putin, following the meeting of the commission for TEC, whose executive secretary is the president of Rosneft, Igor Sechin, instructed to study this issue in more detail.