Low domestic prices hinder gas market development

Unjustified low prices of gas on the domestic market are the main factor hindering the development of the gas market in Russia. Oleg Zhilin, the deputy chairman of the Federal Energy Commission of Russia, voiced this opinion at a session of the parliamentary association for the gas industry in Moscow today. According to him, while low gas prices for some consumers on the domestic market are justified, they are unfairly low for companies of the petrochemical, agrarian and metal industries.

At the same time he believes that independent produces of associated gas can double its production in the short term, and there are sufficient facilities for processing this gas.

According to an estimate by the Federal Energy Commission, gas prices have increased by 20% since 2001. Therefore, gas prices will double over the next three years, the deputy chairman of the commission pointed out. Zhilin underlined that the Federal Energy Commission would support Russia's transition to a gas market based on competition.