Thursday, August 17, 2017

Rosneft may become exclusive gas supplier to middle Urals

In a pending gas supply redistribution agreement backed by the Kremlin, Rosneft may become the only supplier of gas to the Sverdlovsk region and some surrounding areas.

In recent years, the Sverdlovsk region has received its natural gas supply from multiple independent companies, including Itera, Novatek and Gazprom. The decision to position Rosneft as the area's only supplier, experts say, is rooted in the state's support of Rosneft's ongoing oil field development efforts, according to Ura.ru.

Now owned by Rosneft, Itera is speculated to retain its name while it continues to supply up to 75 percent of the region's natural gas. Meanwhile, some insiders believe it is likely that contracts with Novatek, who currently supplies around a quarter of the region's gas, will likely be terminated early.

Insiders close to Novatek are skeptical as to whether the company will yield its share of the Sverdlovsk market. Novatek holds ownership over much of the hardware used to supply the region with gas. The company's possession of a large portion of the gas delivery infrastructure would be a challenge to Rosneft should it seek to usurp Novatek's share of the region, Ura.ru reports.