Call for equal-netback pricing on gas in EEU

MOSCOW. KAZINFORM - Representatives of state bodies and major oil and gas companies of the Eurasian Economic Union (EEU) support the transition to equal-netback pricing on gas as the EEU member states are working to create the common gas market, BelTA learned from the press service of the Eurasian Economic Commission (EEC). 

The plan for setting up the common EEU gas market was discussed at a meeting of the working group under the Advisory Committee on Oil and Gas which includes representatives of relevant bodies, oil and gas companies of the EEU member states (Gasprom, Novatek, Rosneft, and others).

"The working group agreed that there is a need to shift to equal-netback pricing on gas as part of the effort to create the common gas market in the Eurasian union. The parties also need to sign an international agreement to define the authorities of the EEU bodies and relevant bodies of the member states, and set up an interstate exchange floor to trade in the common gas market," the EEC said.

The participants of the meeting also agreed that a major criterion for maintaining market prices in the EEU will be the provision by the member states of national regulatory documents that envisage government regulation to secure the minimal profitability norms and also no state control over the sale of natural gas on the domestic market, Kazinform has learnt from BelTA .