Rosneft Pays for Gazprom's Russian Capacity

Russian giant Gazprom will transport 167.667bn m³ for Rosneft between now and December 2020, the sides agreed January 26, for which Rosneft will pay roubles 295.854bn ($5.3bn), including VAT.

In 2016, Rosneft was the second largest producer with 67bn m³, but so far its efforts to export gas have failed. Rosneft plans to increase production to 100bn m³/yr in coming years, but that is assuming it has export rights. Gas production growth is focused on the Rospan, Kharampur and Beregovoe deposits, and the Kynsko-Chaselsky group of fields. 

Russia's third largest gas producer is the new LNG exporter Novatek, with 61bn m³/yr. All measurements are in Russian standards.

Rosneft last year held talks with BP, a leading Rosneft shareholder, and signed a memo of understanding over potential joint marketing of Russian gas in Europe starting 2019 - but their ambition has so far failed to be fulfilled, because the Kremlin to date has declined to overturn state-run gas giant Gazprom's long-held monopoly on piped natural gas exports.