Electronic Trading in Petroleum Products
Gazprom Neft actively supports the development of exchange trading in oil products in Russia. The company views exchange trading not just as a mechanism for transparent pricing, but also as one of the most effective available sales channels which, concurrently with the implementation of recommendations from regulators including the Federal Antimonopoly Service and the Ministry of Energy (specifically in terms of mandatory exchange sales), will allow the development of universally accepted market pricing data.
Gazprom Neft is a co-founder of the St Petersburg International Mercantile Exchange (SPIMEX) making its oil products available for trade on a regular basis since 2009.
As in previous years, Gazprom Neft’s 2015 year-end results place it among the top three Russian oil companies in terms of exchange sales. Exchange sales of petroleum products totalled 2.51 million tonnes in 2015, matching last year’s levels. Exchange sales of motor gasolines were up six percent year-on-year, to 1.05 million tonnes.
PJSC Gazprom Neft: exchange sales growth 2012–2015, million tons
In engaging in exchange-sales transactions, Gazprom Neft is guided by requirements pursuant to the 2013 joint decree of the Federal Antimonopoly Service and the Ministry of Energy, ordinances and rulings from the Federal Antimonopoly Service), and consistent with the company’s own trading practices, as endorsed by the Federal Monopoly Service. The company makes oil products available for trading on a daily basis, as well as meeting other requirements, applicable to major market participants, pertaining to exchange trades, including making available information on anticipated exchange sales volumes, both on the company’s official Internet site and that of the exchange.
The company is fully compliant with all regulation governing exchange sales, with Gazprom Neft recognised as a benchmark company in ensuring consistency in exchange sales and being honoured by the St Petersburg Mercantile Exchange (SPIMEX) for its work in 2015.
Gazprom Neft use SPIMEX for purchasing crude oil, sold on the domestic market, as well as conducting the off-exchange contracts’ registration.
Gazprom Neft is committed to the constant improvement of its internal business processes relating to the development of exchange trading tools and technologies, and is currently part of a SPIMEX working group on developing international benchmarks for Urals crude based on the EFP contract.