Russia May End Monopoly of Gazprom on Gas Exporting
Posted: 07/23/2014 03:07:01 Edited: 07/25/2014 04:07:31 Clicks: 829
It is reported that Vladimir Putin, the President of Russia has requested government to consider ending monopoly of Gazprom on gas exporting which will allow other gas corporations to export gas from new gas fields in the eastern of Siberia.
The decision of Putin means that Rosneft and its CEO- Igor Sechin may win a victory. Rosneft is always persuading to account for more shares in Russian gas market, striking Gazprom, the main competitor.
Although liberalization of gas market would be decided before September 1, Rosneft will benefit from gas supply contract between China and Russia which is worth for 400 billion USD and anticipate in the construction of Power of Siberia gas pipe planned for 5.5 billion USD, if the decision is realized. The gas pipe will transmit gas to China from the eastern of Siberia and Surgutnetegas having new gas fields in the area may also benefit from the gas pipe.
Putin makes the decision when Russia changing its emphasis of energy exporting to Asia gradually. The expected gas supply contract between China and Russia signed in May is one of the symbols that tendency changing. According to the contract, Russia will export 3.8 billion cubic meters gas to China in the next 30 years. Price is considered as 350 USD per thousand cubic meters.
Gazprom is always endeavoring to control Power of Siberia gas pipe completely, insisting on paying for all of construction expenses independently. However, Rosneft treating the gas pipe as its important tool for increasing tries to pressure on monopoly of Gazprom on gas exporting.
In the early of this month, Rosneft threatened to litigate against Gazprom if Gazprom refused it and other corporations to use Power of Siberia gas pipe. Rosneft affirms that the demands of local residents in Siberia for heating and power cannot be met if Gazprom does not open pipe net.
Besides victory, Rosneft also made a progress in other aspect. Putin asked government to evaluate permission to Rosneft to utilize Pan Sakhalin pipe.
Analysts point out that the new sanctions of the Wertern on Russia and increasing of geopolitical tension will promote Russia to accelerate its gas marketization.
Rosneft and its own supplier-Novatek are the most possibly for benefiting from gas marketizatio. Two corporations were placed on sanction list by the U.S. last week. Based on new sanctions, the two corporations will not receive new long-term loan from banks or investors in the U.S.
Gennady Timchenko, billionaire and one of shareholders of Novatek admits that the sanctions of the U.S. will make more complicated financing. But both Rosneft and Novatek affirm that there are still sufficient cashes to provide funds to their own programs and repay debts.
The decision of Putin means that Rosneft and its CEO- Igor Sechin may win a victory. Rosneft is always persuading to account for more shares in Russian gas market, striking Gazprom, the main competitor.
Although liberalization of gas market would be decided before September 1, Rosneft will benefit from gas supply contract between China and Russia which is worth for 400 billion USD and anticipate in the construction of Power of Siberia gas pipe planned for 5.5 billion USD, if the decision is realized. The gas pipe will transmit gas to China from the eastern of Siberia and Surgutnetegas having new gas fields in the area may also benefit from the gas pipe.
Putin makes the decision when Russia changing its emphasis of energy exporting to Asia gradually. The expected gas supply contract between China and Russia signed in May is one of the symbols that tendency changing. According to the contract, Russia will export 3.8 billion cubic meters gas to China in the next 30 years. Price is considered as 350 USD per thousand cubic meters.
Gazprom is always endeavoring to control Power of Siberia gas pipe completely, insisting on paying for all of construction expenses independently. However, Rosneft treating the gas pipe as its important tool for increasing tries to pressure on monopoly of Gazprom on gas exporting.
In the early of this month, Rosneft threatened to litigate against Gazprom if Gazprom refused it and other corporations to use Power of Siberia gas pipe. Rosneft affirms that the demands of local residents in Siberia for heating and power cannot be met if Gazprom does not open pipe net.
Besides victory, Rosneft also made a progress in other aspect. Putin asked government to evaluate permission to Rosneft to utilize Pan Sakhalin pipe.
Analysts point out that the new sanctions of the Wertern on Russia and increasing of geopolitical tension will promote Russia to accelerate its gas marketization.
Rosneft and its own supplier-Novatek are the most possibly for benefiting from gas marketizatio. Two corporations were placed on sanction list by the U.S. last week. Based on new sanctions, the two corporations will not receive new long-term loan from banks or investors in the U.S.
Gennady Timchenko, billionaire and one of shareholders of Novatek admits that the sanctions of the U.S. will make more complicated financing. But both Rosneft and Novatek affirm that there are still sufficient cashes to provide funds to their own programs and repay debts.
