Posted on 07/01/2013 12:01:44 AM PDT by TexGrill
As the possibility of free market competition in liquefied natural gas sales looms, Gazprom is preparing to do battle with potential domestic and international rivals.
The gas giant plans to take as much as 15 percent of the world LNG market, up from its 5 percent share today, Gazprom chief Alexei Miller said at annual shareholder meeting held at company's headquarters on Friday.
Europe's own gas production is decreasing, while many LNG producers prefer to supply premium markets in the Asia-Pacific region. As a consequence, Europe's share in world LNG imports decreased from 28 percent in 2009 to 21 percent in 2012, Miller said.
This resulted in some European countries having to pay higher gas bills.
"In Spring, the United Kingdom suffered from that and saw gas prices increase to up to two times what Gazprom offers for export," Miller said.
He also said Gazprom, which satisfies two thirds of Europe's gas needs, could make up for the difference using LNG.
During the first half of 2013, the monopoly's gas exports to Europe grew by 10 percent. More than 160 billion cubic meters of gas is planned to be supplied to Europe this year.
But despite rising sales volumes, the company expects its profit to fall by up to 10 percent this year due to rising taxes, lower growth in domestic gas prices and rebates to cash-strapped European clients, Reuters reported
While the role of pipeline gas for Europe has increased, it also means that Gazprom now has more opportunities on the LNG market, Miller said.
Liquefied natural gas has the advantage over pipelines that it can be shipped directly, without having to transit other countries, he added.
Like many other producers, Gazprom is considering the Asia-Pacific region as one of the main markets for its liquid gas exports.
(Excerpt) Read more at themoscowtimes.com ...
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