The weighted average prices of natural gas under Month Ahead deals adjusted for the cost of transportation to the region of consumption.
Regional Indices are calculated for the following exchange-traded commodity:
- Combustible natural gas for industrial and domestic use.
Indices are calculated for all major regions of consumption in the territory of the Russian Federation.
The family of Regional Indices includes the following indicators:
- Indices for exchange-traded natural gas are calculated monthly on the basis of Month Ahead deals made during organized trading in the SPIMEX Natural Gas Section.
- Daily Spreads of Indices for exchange-traded natural gas are calculated daily on the basis of Day Ahead or Day Off deals made during organized trading in the SPIMEX Natural Gas Section.
- Indices for OTC-traded natural gas are calculated monthly on the basis of information on OTC contracts provided to SPIMEX in accordance with the requirements of Regulation of the Russian Federation Government of 23 July 2013 No. 623.
Regional indices include excise tax and VAT at the rate established in accordance with the legislation of the Russian Federation.
Due to specifically developed approaches to calculation, prices of exchange-traded and OTC contracts are netted back to the common regions of consumption, which allows comparing prices for exchange-traded and OTC-traded natural gas separately for each region of natural gas consumption.
Indices for exchange-traded natural gas are calculated on a monthly basis as the weighted average price of contracts used in the calculation of Prices at balancing points. For this purpose contract prices are netted back to the region of consumption by adding the cost of transportation from the balancing point to the region of consumption.
Daily Spreads of Indices for exchange-traded natural gas are defined as the difference between the weighted average price (netted back to the region of consumption) of Day Ahead or Day Off contracts made at major balancing points and the corresponding value of the Index for exchange-traded natural gas.
Indices for OTC-traded natural gas are calculated monthly as the weighted average price of OTC contracts with the delivery point at GDS (Gas Distributing Station) located in the territory of the consumption region, for which the Index for OTC-traded natural gas is calculated.
Indices for OTC contracts are calculated with a delay of 3 business days required for the exchange to collect information on OTC contracts.
Indices for OTC contracts are calculated only subject to the following conditions:
- When calculating the index for OTC contracts in compliance with the Regulation of the Russian Federation Government, information on contracts of at least two (2) persons that have entered into an OTC contract and at least three (3) purchasers of commodities is used.
Despite the peculiarities of pricing and different geographical referencing of contracts: prices for exchange-traded natural gas are determined at compressor stations, and for OTC-traded natural gas — at GDS, calculation methodologies are developed in such a way that, as a result, Regional Indices allow comparing prices for exchange-traded and OTC-traded natural gas.