Russia in struggle for European gas market

The European gas market is in depression. The whole set of various factors, both subjective and objective, has led to negative dynamic of the demand.

Decrease in domestic production and fears of Brussels of enhanced dependence on imports provide powerful psychological pressure on policies in the gas sphere.

Quite high gas prices under long-term contracts linked to oil prices amid the crisis in the Eurozone and substantial state support to alternative energy sources reduce consumption of natural gas creating the effect of the excessive supply.

This situation is developing on the background of uncertainty in the sphere of regulation of infrastructure projects, which in the future will create additional risks for expansion of gas consumption and normal functioning of the market. Besides, Gazprom is facing antimonopoly prosecution by the European Commission.

The report elaborates on the following issues:

• Situation on gas markets in Europe and Turkey

  • Analysis of the level of production, consumption and imports
  • Dynamic of the demand for natural gas

• EU pricing policies

  • Spot trade development, prospects of new principles of contracting gas supplies

• Third energy package: from words to deeds

  • Application of third energy package rules on the national level
  • Corporate restructuring and sale of assets
  • Problem of investments in infrastructure

• Russian gas strategy towards the EU

  • Pricing policies
  • Restructuring of European assets
  • Relations with national clients and supranational regulators
  • New export channels and their main problems
  • Prospects of liberalization of Russian gas exports

• Diversification practice

  • Real prospects of emergence of new suppliers to the EU market, potential of unconventional gas
  • Competition between LNG and piped gas

• Prospects of developments

The contents of the report: