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Russia's Gazprom seeks bigger gas market share in Europe after bumper exports

Gasoil News - Published on Mon, 11 Feb 2019

Image Source: Hürriyet Daily News
Reuters reported that Russia's Gazprom is looking to gain an even larger gas market share in Europe following record-high 2018 exports, expecting a decline in Europe's gas output combined with rising demand, a senior manager at the company said. Last year it sold more than 200 billion cubic metres of gas to Europe, including Turkey, while its gas market share in the region rose to more than a third.

Elena Burmistrova, in charge of the Russian company's exports, said Gazprom would be able to offset a production decline in the European Union, mainly at the Netherlands' Groningen, once Europe's largest natural gas field.

She said on the sidelines of the European Gas conference in Vienna "North Sea production is also gradually declining. So, the space for Russian gas is being freed up."

The Paris-based International Energy Agency has said that EU gas production will halve by 2040. Moscow has piped gas to Europe from its fields in Siberia and northern Russia for more than 50 years. It can ill afford losing the lucrative market for Kremlin-run Gazprom, whose sales account for over 5 percent of Russia's USD 1.6 trillion economy.

Burmistrova said that Gazprom was striving to raise its market share in Europe, where the company generates two thirds of its gas sales.

Burmistrova said in remarks cleared for publication "According to preliminary estimates, our share (in Europe) stood at 34 percent in 2017, while in 2018 it could have reached around 35 percent."

Russian energy sales have become increasingly politicised since 2014 following the annexation of the Crimean peninsula from Ukraine, accusations of meddling in the US presidential election in 2016 and a nerve gas attack in Britain.

Source :

Posted By : Rabi Wangkhem on Mon, 11 Feb 2019
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