The issue with the routes of gas delivery to consumers should be depoliticized

11 june 2015 | TASS

Gazprom has contracts signed with some european countries until 2030-2035. "These are standard "groninger"contracts. They are like Algerian or Norwegian ones. Price formulas change in some cases , e.g. Gazprom changed the pricing formula with the Italians upon mutual consent. Step by step pricing flexibility is changing, except the cases under the court," considers the Chief Adviser to the Head of the Analytical Center Leonid Grigoriev.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

The operating contract with Ukraine ends in 2019. Now that Gazprom and Ukraine’s Naftogaz are embroiled in litigation at the Stockholm Arbitration Tribunal over the terms of the transit agreement, it is difficult to imagine negotiations between them on transit deliveries from 2020, considers the expert.

The 'Turkish Stream' is aimed at economic and political de-risking, according to Mr. Grigoriev. "Gazprom runs high risks and has made a decision on using the Turkish Stream to deliver the gas currently transited via Ukraine and this is a large part of the gas supplied to European consumers under contracts," the expert said.

The delivery volume is a subject to variation, noted Mr. Grigoriev, and by request of consumers in case of a cold winter it will volume up from 100 to 130-140 blm cubic metres; Gazprom has to keep the standby capacity for such cases. This is a much costly affair, but Gazprom accomplishes it.

As for the routes of gas delivery to consumers, this issue should be depoliticized, he added. "If politics is excluded, then the route is Gazprom’s business. The task of how to connect the Turkish Stream with Austria in the area of Istanbul and the Bosporus Strait is a technical problem and the issue of investments," the expert said.

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