Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Kommersant FM on the Turkish gas hub prospects and its importance for Russian gas exports.
Pricing is unlikely to be independent of Europe, Alexey Belogoryev noted:
In addition, the Turkish energy minister said that the country would like to discuss with Russia a special price for imported natural gas from the country. The contract expires in 2025."This is very far from a price-forming role. After all, by a gas hub we most often mean precisely the possibility of influencing pricing, the point where this pricing takes place. These are the main hubs in Europe and the USA, which everyone is guided by. I think there will be great difficulties with pricing, because after all, the market scale is relatively small.
If we compare TTF in the Netherlands, not to mention Henry Hub in the USA, all these reference hubs, which we most often talk about, still imply a significantly larger volume of physical trade and virtual, speculative resale of gas. With regard to Turkey, such volumes will definitely not be achieved. Even if exchange trading is properly organized, it will not become liquid. She will still be guided by the indicators that are being formed in Europe."
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