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After Shock | ancient history, new realities
Since the appearance of first Soviet and then Russian gas on the European gas market, the formation of contracts with European companies has been based on the so-called Groningen model of a long-term export gas contract (DSEGK). This model was developed in Europe, it was used in Europe, without it the formation of the European gas system would not have been possible. If you like, the Groningen model of the gas contract is the European alpha and omega, the foundation of the foundations, the cornerstone and other words with the same meaning. If anything can be called a European value, then it is the Groningen model of the DSEGC.

Highlights of this model:
• The contract should be long-term, since the development of deposits, the laying of first trunk and then distribution networks, the construction of underground gas storage facilities (UGS) requires a lot of time and serious money.
• The price of gas should depend on the price of the oil basket.
• The third feature of the Groningen DSEGC model is that gas prices changed every nine months, during which time it was just possible to give birth to average levels of prices for the oil basket.
• The fourth nuance is the principle of "pay and / or download".
The Groningen model suited absolutely everyone - suppliers and miners, banks and consumers, tax authorities of all countries, who found it convenient to calculate their bribes. Since not only supply contracts were long-term, but also transit contracts, the gas business in Europe was predictable, almost planned, perhaps not on a national scale, but on the scale of individual companies in this market. It suited our USSR with its planned economy too - we could also draw up plans for the development of Siberian deposits, plans for the construction of thousands of kilometers of gas pipelines and other gas pumping units. Of course, the Groningen model was used by Gazprom after 1991 for the same reason: convenient, logical,

Who doesn't like this state of affairs? Yes, the same European Commission, its officials, who, like any bureaucrats, have strived and are striving to realize their own ideal: maximum opportunities with a minimum of responsibility. ...

by Cat on Tue Jul 19th, 2022 at 09:36:16 PM EST
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