Russia ready to retake market shares from Norway
After a more than 20 percent drop in gas exports to the EU in 2009, Russia’s Gazprom this year intends to retake, and even increase, its European market share. That will be to the disadvantage of the country’s biggest competitor – Norway.
Gazprom, the Russian gas export monopoly, in the wake of the financial crisis and the transit conflict with Ukraine, lost a significant part of the European gas market. According to newspaper Vedomosti, the company in 2009 decreased production with 16 percent, and European exports dropped 21 percent. Gazprom’s share of the European gas market in the period dropped below 25 percent (from more than 26 percent).
Norway, meanwhile, in the same period increased its production with four percent and boosted its share in the market to 18 percent (up from 15 percent).
Now, the Russian gas giant is determined to retake its former market shares. Gazprom is in 2010 ready to supply 160 billion cubic meters to the market, a 13 percent increase from 2009, a company representative told Vedomosti. That could return the company to its former levels, or even increase the share of the market to more than 27 percent, an analyst told the newspaper.
Norway, which along with Katar and Algeria, is Russia’s biggest competitor in the EU gas market, will hardly be able to increase its gas export. The exports is already on the verge of capacity and the country is in 2010 expected to increase exports with no more than one percent.
According to the Norwegian Petroleum Directorate, the Norwegian gas sales in 2009 amounted to 103 billion cubic meters. Directorate leader Bente Nyland in her 2009 annual report, said that the exports will increase slightly over the next year and reach 112 billion cubic meters in 2014.
