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Russian Gazprom leads gas market
27-11-2015 18:14
Russian Gazprom leads gas market
Russian Gazprom leads gas market

Economic conflicts often overtake military ones by their intensity of tensions and puzzled intrigues. Sometimes they go together and sometimes they are closely interrelated. For instance, Russia’s public joint stock company Gazprom has a reason to rejoice. Experts at Time Energy concluded that the Russian gas exports reached such high levels that the company can hold the prices below $9-10 a million BTU. Such a low fuel price may trigger cancellation of large infrastructure projects on gas alternative shipments to the region. In other words, the European Union government will have to pay much more for the construction than for the Russian gas. As there is no OPEC analogue in the gas market, Russia remains the key player prevailing in this segment. This role provides the country with great natural gas reserves and solid infrastructure in fuel shipments to ultimate consumer. Gazprom has its own gas mains and constantly expands its ‘horizons’. That is why the Russian giant may dump considerably. It is hard to withstand such competition. For example, Algeria and Libya, which together stand for 10% of gas shipments to Europe, has started to cut their exports. The Russian supplier will not miss the opportunity to raise its share in the market. Amid low prices, it is hard to attract investments to gas project. Therefore, Europe will be still dependent on the Russian gas.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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