Gazprom vs. Other Gas Producers: Friends or Foes?

Energy Policy, Vol. 61, pp. 663–670, 2013

8 Pages Posted: 5 Mar 2020

See all articles by Lars Petter Lunden

Lars Petter Lunden

affiliation not provided to SSRN

Daniel Fjaertoft

affiliation not provided to SSRN

Indra Overland

NUPI - Norwegian Institute of International Affairs; NUPI - Norwegian Institute for International Affairs

Alesia Prachakova

affiliation not provided to SSRN

Date Written: 2013

Abstract

The non-Gazprom gas producers (NGPs) doubled their share of the Russian domestic gas market between 2000 and 2010 and have continued growing since then. For several years especially Novatek expanded. More recently, Rosneft has emerged as a key player, not least through its purchase of TNK-BP. This article begins with an overview of the companies in the Russian gas sector, their resource bases and capacities, and subsequently examines whether differences in field development costs and export market access may make it rational for Gazprom to continue ceding market share to the NGPs. With rising costs of Gazprom's queue of greenfield developments, any delays in Gazprom's investment program may be compensated through increased NGP production. The article argues that the NGPs are ready to fill the gap, may be allowed to do so and are already increasing their market share in an increasingly competitive market. The stage may now be set for a continued gradual transformation of the Russian gas market, in which the interests of Gazprom and the NGPs may be complementary or may be pitted against each other, but those of the Russian Federation are in any case likely to be better fulfilled than in the past.

Keywords: Russia, Natural Gas, Gazprom

Suggested Citation

Petter Lunden, Lars and Fjaertoft, Daniel and Overland, Indra and Prachakova, Alesia, Gazprom vs. Other Gas Producers: Friends or Foes? (2013). Energy Policy, Vol. 61, pp. 663–670, 2013, Available at SSRN: https://ssrn.com/abstract=3506685

Lars Petter Lunden (Contact Author)

affiliation not provided to SSRN

Daniel Fjaertoft

affiliation not provided to SSRN

Indra Overland

NUPI - Norwegian Institute of International Affairs ( email )

Oslo
Norway

NUPI - Norwegian Institute for International Affairs ( email )

Oslo
Norway

Alesia Prachakova

affiliation not provided to SSRN

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