On access of independent gas producers to the gas transmission system
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Highlights of independent gas producers access to the gas transmission system |
The Unified Gas Supply System is currently at the superior limit of its capacity. Gazprom extracted 547.9 bcm of natural gas in 2005. At the same time, together with gas supplies from independent producers and Central Asia, UGSS transported 699.7 bcm of gas in 2005.
Gazprom already needs to enlarge the throughout capacity of UGSS by 35 bcm and keep building it up in the future as Russian producing companies increase their gas output. Gazprom's target is to extract between 580 and 590 bcm of gas by 2020 and up to 170 bcm more will be supplied by independent producers. Gazprom has a vested interest in promoting a competitive gas market and encouraging independent producers to increase their output, in order to more fully meet Russia's gas needs and ensure compliance with Russia's international commitments in the natural gas supply sector.
For independent producers, the rate of gas transmission via Gazprom's trunklines is set by the RF Federal Service for Tariffs (FST). Before August 1, 2006, the single rate was RUR 23.84 per 1,000 cu m/100 km From August 1, 2006, there is a new differentiated rate setting methodology, under which the rate is formed from the two components: the RUR 5.28 charge for shipping 1,000 cu m per 100 km and the RUR per 1,000 cu m charge for using gas mains, which is approved depending on gas entry and exit points in the gas transmission system.
Pursuant to the Decision of FST Management Committee as of December 26, 2006 and FST Order #474-e/2 as of December 26, 2006, from March 1, 2007 the tariff (for gas transmission via Gazprom's gas mains for the independent companies as well as for the gas transmission services marked by Gazprom and its affiliated companies at free (non-regulated) prices) was increased by 15 per cent.
At present, the transmission rate does not cover Gazprom's UGSS maintenance costs, namely expenses incurred in upgrading the gas transmission system, storing gas in underground depots and expanding storage facilities.