Gas export pricing in Europe: how to balance ... - Konoplyanik.ru
Gas export pricing in Europe: how to balance ... - Konoplyanik.ru
Gas export pricing in Europe: how to balance ... - Konoplyanik.ru
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Gron<strong>in</strong>gen (Dutch) & Russian/Soviet<br />
LTGEC Models: Differences & Similarities<br />
Contract<br />
duration<br />
Delivery<br />
po<strong>in</strong>t<br />
Pric<strong>in</strong>g<br />
Gron<strong>in</strong>gen<br />
LTGEC<br />
model<br />
(s<strong>in</strong>ce 1962)<br />
Russian / Soviet LTGEC<br />
model (s<strong>in</strong>ce 1968)<br />
Russian / Soviet specifics<br />
(why Russian /Soviet LTGEC<br />
model differs from Gron<strong>in</strong>gen<br />
LTGEC model)<br />
Long-term Longer-term Larger West Siberian fields & unit<br />
CAPEX, longer transportation<br />
distances & pay-back periods<br />
Upstream <strong>to</strong><br />
end-user<br />
Upstream <strong>to</strong> end-user - on EU-15<br />
border; one delivery po<strong>in</strong>t served<br />
for few f<strong>in</strong>al consumers<br />
Replacement value (RFO + LFO) + net-back <strong>to</strong><br />
delivery po<strong>in</strong>t + regular price review + m<strong>in</strong>imum pay<br />
obligation (take-and/or-pay)<br />
His<strong>to</strong>rically: on political border between<br />
East & West<br />
West: both for <strong>export</strong> & domestic<br />
sales;<br />
East: only for <strong>export</strong> sales<br />
Protection<br />
from price<br />
arbitrage<br />
Role of<br />
transit<br />
Dest<strong>in</strong>ation clauses<br />
None (m<strong>in</strong>imal)<br />
Significant – especially after<br />
dissolution of COMECON &<br />
USSR & after EU expansion<br />
More important s<strong>in</strong>ce <strong>in</strong> one delivery<br />
po<strong>in</strong>t - few contracts with much more<br />
differ<strong>in</strong>g <strong>export</strong> prices dest<strong>in</strong>ed for<br />
different markets<br />
New sovereign states appeared<br />
upstream <strong>to</strong> his<strong>to</strong>rical delivery po<strong>in</strong>ts +<br />
new <strong>ru</strong>les discrim<strong>in</strong>at<strong>in</strong>g transit<br />
A.<strong>Konoplyanik</strong>, UNECE <strong>Gas</strong> Work<strong>in</strong>g Group Experts Meet<strong>in</strong>g, Moscow, 30.03.2010 Slide 16
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