Expert: Russia works out system of gas trading
Azerbaijan, Baku, Feb. 23 / Trend E. Tariverdiyeva /
Russia works out system of the gas trading, but it is early to speak about a large scale, Russian Gas Society President, Russian State Duma Deputy Chairman Valery Yazev, said.
"Even on the European stock exchanges as much gas is sought and bought as is sold. That is, it is an imitation of exchange trade," Yazev said in an interview with Trend.
"The real stock trading is characterized by futures and swaps, a considerable predominance of goods over the daily trading volume, he said, "while the long-term contracts focused on integrated market demand for energy are more successful. In addition, a main-distribution gas transmission network should be thicker for development of stock trading."
Prospects for producers, in case of creation of a specialized gas exchange for free trade in the gas and the installation of a price that does not depend on oil prices, is not the most optimistic, he added.
"First, the volatility of prices will significantly increase; that after the crisis is not welcomed. Second, the risk of producers will increase in exploration, mining and gas production. At least, loans will become more expensive and the price for consumers will be higher," he said.
But, Yazev said, one should not forget about the advantages of exchange trade - maintaining competition between the manufacturers and the achievement of the objective balance of supply and demand at an economically feasible level of prices.
Regarding the possible impact on the market of alternative gas sources, such as shale gas, Yazev said it would seem that shale gas has changed situation in the U.S. market.
But this, he said, was preceded by a depletion of large deposits of traditional gas.
"Because of this," Yazev said, "traditional gas, gas, coal deposits and shale gas began to compete on equal terms in the United States."
"In contrast, Russia has many large and unique fields. Azerbaijan is also betting on large fields," In fact, the presence of large additional volumes of gas in the market could change the global climate," Yazev said.
"But we must take into account natural gas - a very attractive fuel. As soon as natural gas excess is observed, it will quickly replace coal oil and economically inefficient forms of renewable energy," Yazev said.
Answering the question of the increased interest in the supply of liquefied natural gas, in particular, its transport via the Black and Caspian seas, could affect the natural gas market in the region, Yazev said that the maritime transportation of liquefied and compressed gas in these regions is possible, although in limited amounts.
"Turkey is not happy with the passage of LNG through the Bosporus and the Dardanelles. With presence of the southern gas pipeline, as well as the spare capacity of Ukrainian gas transport system, I would have regarded these projects as justified only for very extreme situations," he said.