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Rosneft barred from using Gazprom pipeline on Sakhalin

20th February 2015

An arbitration court on Russia’s Far East island of Sakhalin ruled yesterday that Rosneft is not entitled to use a gas pipeline which is part of the Gazprom-led Sakhalin-2 project – Rosneft plans to appeal the decision

An arbitration court on Russia’s Far East island of Sakhalin ruled yesterday that Rosneft is not entitled to use a gas pipeline which is part of the Gazprom-led Sakhalin-2 project – Rosneft plans to appeal the decision
Gazprom opposes opening up its transmission lines on the grounds that it does not have spare capacity to allow third party use.

This comes at the latest episode in long spat between the Russian entities over third party use of state-owned Gazprom’s oil and gas infrastructure.

"Rosneft plans to lodge an appeal against the court decision over access to Sakhalin 2 project infrastructure," a company spokesman told Platts.

Rosneft would use the pipeline to boost its LNG capacity at liquefaction plants.

Conflict over infrastructure access came to public attention last year when Rosneft criticised Gazprom for its monopoly over new lucrative transmission deals with Asian energy partners.

“This position is completely different from the target of developing Siberia and Far East regions and openly contradicts the current legal system,” said Rosneft in July. “Gazprom ignores the fact that it is not an equal market participant, but a monopoly, which in addition to the advantages of being a monopoly, is subject to obligations to other participants of business activities, including those guaranteed by law.

“Gazprom, being an infrastructure monopoly, is obliged to guarantee independent producers access to the transport system.”

Gazprom opposes opening up its transmission lines on the grounds that it does not have spare capacity to allow third party use.

 

 

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