Gas and Energy Net's - a Gazprom subsidiary - Deputy General Director for sales, Dmitry Mironov told NGL prices have slowly begun to level off
Gas and Energy Net, a Gazprom subsidiary in charge of sales of oil products, natural gas liquids (NGL), and sulfur, projects the price of NGLs on the domestic wholesale market at $166-194 per tonne, which equals prices from 2005, the company's Deputy General Director for sales, Dmitry Mironov, told a conference on NGL exports from Russia and the CIS Tuesday.
According to his statement, NGL prices have slowly begun to level off, as in December NGLs cost a mere $105 per tonne, down from $332-360 per tonne prior to the crisis in mid-2008.
Meanwhile, consumption volumes have not decreased, remaining at the seasonal level of previous years. According to Mironov, the retail price this year will be at the level of 2006, a considerable 20 percent higher than the wholesale price, which is set to result in the redistribution of NGLs from the domestic to the export market.
To stabilize the domestic NGL market, Mironov believes the authorities must take stimulus measures for its development. According to the top executive, Gas and Energy Net plans to sell 1.5 mln. tonnes of NGLs on the domestic market, up from 1.3-1.4 mln. tonnes in 2008. Overall, annual NGL consumption, according to various estimates, is 3m tonnes in Russia.
Source: RBC
Author:
Ksenia Kochneva
