News Desk

Gazprom ... keeping European market share at 35 per cent

Gazprom ... keeping European market share at 35 per cent

Gazprom’s European gas market share up


Gazprom’s share of the European gas market rose to a new record high of 36.7 per cent last year from 34.7 per cent in 2017, the Russian company’s managers told an investor presentation in Hong Kong.

Gazprom’s gas exports have become increasingly politicised since Russia’s annexation of Crimea peninsula from Ukraine in 2014. The company’s gas supplies to Europe account for around two thirds of its total gas sales.

Elena Burmistrova, the head of Gazprom’s exporting arm, Gazprom Export, also said the company planned to keep its market share in Europe at no less than 35 per cent in coming years.

"For our exporting strategy, I see main priorities for the European markets are keeping – and maybe a limited increase – of our share," she said at the presentation which was also available via a webcast.

She also said that Gazprom’s average gas price in Europe reached $245.5 per 1,000 cubic metres last year and is set to come in at $230-$250 this year on average.

Gazprom is meeting investors in South-East Asia this week and will hold another event in Singapore. The company set to enter in the region’s gas pipeline market later this year with the start of gas flows to China in December.

In Europe, Gazprom is facing stiff competition from other energy sources and sea-borne supplies of liquefied natural gas (LNG), including from the United States.

Europe has been the top buyer of US LNG after a near fivefold spike in US LNG sales to the continent this winter, overtaking South Korea and Mexico, a Reuters analysis showed last month.

But Burmistrova dismissed the threat of the US LNG to Gazprom’s dominance in Europe, saying it was not "a game changer".

More Stories