Competition to Gazprom in Europe after 2017

Gazprom will keep the status of the main gas deliverer in the European market until 2017-2018 and thus it will probably revise prices in the long-term contracts with the European buyers.

Tatiana Mitrova, the ‎Head of Oil and Gas Development Department of Russia and the Energy Research Institute RAS, said for Itar Tass.

- Hydrocarbon production fall in Europe generates the need for export. Now, gas production in the continental area of the Great Britain significantly decreases every year. Apart from that, up till 2017-2018, in Europe, there are no other sources of gas and practically only Russia can increase deliveries to the Europeans - Mitrova says.

She added that gas deficit in Europe will enable Gazprom to improve its position to the market and the competition will not appear before 2017-2018 when new oil gas (TNG) capacities will be put into operation at the world market.

In 2016-2017, it is expected that a couple of Australian TNG projects start which will increase capacities for gas production in the country from 20 million in 2011 to 124 million in 2017. Apart from that, the plan is to set up three factories of the American gas with the capacity of 50 to 55 million tons.

Having all this in mind, Mitrova concludes that in the negotiations with respect to gas prices revision for the European buyers, Gazprom will keep the position of relating oil price and will offer only minimal benefits for its clients.