Rosneft in dispute over associated gas with Sibur

As Kommersant has reported, Rosneft tries to review terms of the long-term contract on the supply of the broad fractions of light hydrocarbons to Sibur’s enterprises. This contract was prolonged by BP-TNK in mid-March, two weeks before its merger. Sibur doesn’t want to change the terms and Rosneft tries to accuse the petrochemical company of monopolism to put pressureon  in the negotiations.

Yesterday, during the meeting in Tobolsk, Rosneft’s Head, Igor Sechin complained to President Vladimir Putin that terms of APG supply for processing are unfair: “In conditions of the monopolistic market, we have to supply APG at giveaway prices, which are less than the price of dry topped gas”.

Two products are produced as a result of the APG processing - dry topped gas, which can be supplied to Gazprom’s pipelines, and the broad fraction of light hydrocarbons, which is mainly used in petrochemistry. According to Igor Sechin, Rosneft has to sell APG at the price of 1 ruble per 1 cubic meter in Western Siberia, while dry topped gas costs 2.3 rubles. He proposed to change the regulation of the access to pipelines, via which APG and its products are transported.