Under Russian law, Gazprom is the only company currently permitted to export pipeline gas, but the government has been examining Rosneft's proposal, with a decision expected by March next year.
Casimiro told the Vedomosti newspaper in an interview:
- We very much looking forward to a positive decision on this issue
- Additional advantage is not only for the state budget, but also in [complying with] Europe's trade rules, the requirements of the 3rd energy package
Despite Gazprom's historical monopoly on exports of pipeline gas, giving Rosneft export rights could be one way of complying with the European law.
- I think it would be right to grant access to export pipelines to independent producers
- Liberalization of the gas industry is a positive moment for Russia
Russia's lower-than-expected supplies to Europe contributed to a surge in European gas prices in recent months, with the TTF day-ahead price reaching record high Eur116.10/MWh on Oct. 5, as assessed by Platts.
The TTF day-ahead price was assessed at Eur103.60/MWh on Dec. 10, up by 550% compared with the same assessment a year ago.
Gas output increase
In line with its low-carbon agenda until 2035, Russia's largest crude producer aims to increase the share of gas in its portfolio to over 25%.
To reach the target, Rosneft is betting on its greenfield projects Rospan and Kharampur, which have a total annual production capacity of 45 Bcm of gas.
Rospan, the gas and gas condensate project in West Siberia is expected to drive the company's production of hydrocarbons and reach annual production of over 20 Bcm of gas, 5 million mt of gas condensate and more than 1 million mt of propane and butane in the near future.
- It is gas that will act as a reserve fuel for the energy transition period
- This is the reason why Rosneft is betting on the growth of natural gas production
Previously, Rosneft CEO Igor Sechin warned of a potential «super-cycle» in oil & gas markets amid fears of a continued rapid growth in demand outpacing supplies.
For its part, Rosneft has signed deals on lower-carbon cooperation with numerous partners since the beginning of the year, including BP, Baker Hughes, Equinor, and ExxonMobil, as well as China and Japan.
The company's 2035 climate targets include prevention of greenhouse gas emissions of 20 million mt in CO2 equivalent, reduction of upstream emissions intensity by 30% compared with 2019 levels, a methane emission rate below 0.25% and zero routine flaring of associated gas.