PRICING IN THE WORLD MARKET OF NATURAL GAS

Abstract

The analytic research results for gas price formation methods on the world markets are presented. The relevance of the research is caused by a role of Russian Federation in the world economy as the largest producer and exporter of the natural gas. Current and perspective volumes and directions of gas sale are reviewed for Gasprom PJSC as the only gas exporter from Russian Federation and the main in the Europe. The interest of the company in supply of gas to foreign countries is proved. The main methods of natural gas price formation, relevant for all regional markets, are considered in the article. The price structure of the world market of gas and the regional markets are presented. It is specified in two segments – according to transactions with the gas extracted in the territory of consuming countries and in a section of export-import transactions. The analysis for the markets of pipeline gas and sales markets of liquefied natural gas are described separately. Price levels and their dynamics are specified. Special attention is paid to the analysis of price formation methods in the European and Asia-Pacific markets as relevant for Gazprom PJSC. The conclusion is drawn that PJSC Gazprom in the export-import supply of pipeline gas adheres to two methods of pricing. It is combination of the market method, if there is a monopoly of the seller or buyer at the transaction, and the price regulated by the state with taking into account political factor. Annual reviews of the International Gas Union are taken for the research as information base.