Gazprom’s Not the Only Player in Russian Fields

December 5, 2012

can promote first of all strengthening of Gazprom itself, as only Gazprom is in the command of the main pipelines, and not only domestic, but export ones as well. But it is necessary to transport the produced gas somewhere, and not only to the local consumers.
Whereas, according to the opinion of the analysts, in particular, Dmitry Lyutyagin from the Investment Company Veles Capital, demand for gas export from Russia can reach 390-400 bcm by 2020. Taking into account increasing internal consumption which is 420 bcm at present, Russia will have to produce over 800 bcm a year. Without IGP participation, Gazprom will not cope with this scale of production, even taking into account startup of the Yuzno-Russkoye field (having reserves exceeding 1 tcm) last fall, and rather vague plans regarding the Arctic shelf development.
“Part of our positions either coincide or is close to those of Gazprom, e.g. regarding such issues as taxation, gas prices increase, and development of independent sector,”  President of Soyuzgas Victor Baranov says confidently. In his opinion, Russia has all prerequisites for further approximation of the positions of the emerging gas market participants. “Independent producers do not demand provision of unrestrained discretion,” noted Vice-President of Nortgaz in Finance and Economy Vyacheslav Sotnikov. “We talk only of the necessity to use full capacity of the facilities of the companies, and to produce gas at the fields.”
Lately, there appeared information in mass media that Gazprom abandoned the idea of the “gas OPEC”. This statement can be true. In case of realization of this idea, it would be necessary not only to continuously negotiate with such gas producing countries as Algeria, Venezuela, Iran, Qatar and Turkmenistan, but also more seriously consider the approach of the domestic independent gas producing companies.