Partial Pipeline Gas Export Liberalisation Expected
BMI View : Russia could soon reach a decision to open gas pipeline export rights to selected firms, thereby further eroding Gazprom's privileged position in Russian gas trade. As with LNG exports, we believe this liberalisation will only be partial - with Rosneft as its chief beneficiary -, and incremental as pipeline exports to Europe remain Gazprom's domain. However, we have not factored the likely increase in gas production that liberalisation could bring about into our forecasts, as we believe that US sanctions against Rosneft will limit its ability to access funding without Chinese assistance.
Rosneft, which stepped up efforts to gain rights to export pipeline gas and access to Gazprom's pipeline networks, has gained President Vladimir Putin's support. On July 22 2014, President Putin pushed the government to look into liberalising pipeline gas exports from the Russian Far East to end Gazprom's monopoly. A government decision to liberalise the pipeline gas export market in the Far East will be made by September 1 2014, according to the Moscow Times.
Gazprom's Privilege To Further Erode
|Liberalising Pipeline Exports Provide Upside|
|Russia - Gas Production (bcm)|