“Gazprom” has disclosed the terms of the supply of gas at a joint with “Ushastaya” megaproject liquefaction and gas processing in the Baltic sea. In terms of the largest Russian domestic market of the contract, “Gazprom” for 20 years, will supply project for 45 billion cubic meters of gas a year at a regulated price for the Leningrad region. The average estimated price of delivery for the entire term of the contract is 5.4 thousand RUB per thousand cubic meters. The future plant after processing, will sell to Gazprom the remaining dry gas in the amount of 18 billion cubic meters in the same year at a regulated price.Became known the terms on which “Gazprom” and “Rochemolles” (a parity joint venture of “Gazprom” and “Rushistory” Artem Obolensky) in June signed a contract for the supply of gas. “Rochemolles” plans to build an integrated LNG plant and gas processing plant in Ust-Luga, which will produce 13 million tons of LNG per year to 4 million tons of ethane and 2.2 million tons of liquefied petroleum gas (LPG). In June, the company announced that it has signed a contract for the supply of 45 billion cubic meters of gas per year for 20 years. In its semi-annual reporting on the company “Gazprom” has disclosed that the total contract value is estimated at 4.8 trillion rubles., and the gas will be supplied at regulated wholesale price for the Leningrad region. Now it is about 4.8 thousand RUB per thousand cubic meters. Based on the amount of the contract, the average price of deliveries will amount of 5.37 thousand RUB per thousand cubic meters (taking into account a small annual indexation of wholesale prices).After processing “Rochemolles” will sell to Gazprom the remaining dry stripped gas in a volume of 18 billion cubic meters a year, which is expected to be sent further to the export pipeline “Nord stream 2”. As follows from the reporting “Gazprom”, the price under this contract will conform to a regulated price for the Leningrad region.This means that “Gazprom” puts all the promising export margin (which occurs due to the difference of export and domestic prices) in the project of LNG/gas processing plants and will share it with the “Rushikulya”. At the same time, possible risks of changes in fall in export prices is also passed on the project, but they are at least partly offset by exchange rate fluctuations: at lower oil prices the ruble, as a rule, weakens the dollar, and are fixed in rubles of domestic regulated price of gas will decline in dollar terms.In 2018, Gazprom received the right to sell gas export projects on methanol production at free market prices and not regulated. A similar decision was received in 2017 for LNG. This approach is informally explained by the need to give “Gazprom” the opportunity to export part of the margin of a producer of methanol, given that the projects are actually indirect methanol the method of exporting gas.The Yuri Barsukovneft allowed to build a small regasification terminal with a capacity of up to 600 thousand tons of LNG in the Avacha Bay near Petropavlovsk-Kamchatsky. Still plan on gasification of the region via pipeline from the transshipment terminal NOVATEK in Kamchatka, therefore, deemed too expensive and rejected. But the question accompanying pipeline infrastructure remains: the acting Governor of the region Vladimir Solodov already asked Vladimir Putin to use for its construction, “Gazprom”. However, the company is not legally obliged to make these pipes, and the economic attractiveness of the project is questionable.Read more
