IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v61y2013icp663-670.html
   My bibliography  Save this article

Gazprom vs. other Russian gas producers: The evolution of the Russian gas sector

Author

Listed:
  • Lunden, Lars Petter
  • Fjaertoft, Daniel
  • Overland, Indra
  • Prachakova, Alesia

Abstract

The non-Gazprom gas producers (NGPs) doubled their share of the Russian domestic gas market between 2000 and 2010 and have continued growing since then. For several years especially Novatek expanded. More recently, Rosneft has emerged as a key player, not least through its purchase of TNK-BP. This article begins with an overview of the companies in the Russian gas sector, their resource bases and capacities, and subsequently examines whether differences in field development costs and export market access may make it rational for Gazprom to continue ceding market share to the NGPs. With rising costs of Gazprom's queue of greenfield developments, any delays in Gazprom's investment program may be compensated through increased NGP production. The article argues that the NGPs are ready to fill the gap, may be allowed to do so and are already increasing their market share in an increasingly competitive market. The stage may now be set for a continued gradual transformation of the Russian gas market, in which the interests of Gazprom and the NGPs may be complementary or may be pitted against each other, but those of the Russian Federation are in any case likely to be better fulfilled than in the past.

Suggested Citation

  • Lunden, Lars Petter & Fjaertoft, Daniel & Overland, Indra & Prachakova, Alesia, 2013. "Gazprom vs. other Russian gas producers: The evolution of the Russian gas sector," Energy Policy, Elsevier, vol. 61(C), pages 663-670.
    • Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:663-670
    DOI: 10.1016/j.enpol.2013.06.055
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513005405
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.06.055?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Söderbergh, Bengt & Jakobsson, Kristofer & Aleklett, Kjell, 2010. "European energy security: An analysis of future Russian natural gas production and exports," Energy Policy, Elsevier, vol. 38(12), pages 7827-7843, December.
    2. Loe, Julia S.P. & Ladehaug, Olga, 2012. "Reducing gas flaring in Russia: Gloomy outlook in times of economic insecurity," Energy Policy, Elsevier, vol. 50(C), pages 507-517.
    3. Grant Dansie & Marc Lanteigne & Indra Overland, 2010. "Reducing Energy Subsidies in China, India and Russia: Dilemmas for Decision Makers," Sustainability, MDPI, vol. 2(2), pages 1-19, February.
    4. David G. Tarr & Peter D. Thomson, 2017. "The Merits of Dual Pricing of Russian Natural Gas," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 14, pages 315-336, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catherine Locatelli, 2020. "Une lecture institutionnaliste de la réforme du secteur gazier russe," Working Papers hal-02734835, HAL.
    2. Sadek Boussena & Catherine Locatelli, 2017. "Gazprom and the complexity of the EU gas market: a strategy to define," Post-Print hal-01618494, HAL.
    3. Costin Radu Boldea & Bogdan Ion Boldea & Tiberiu Iancu, 2023. "The Pandemic Waves’ Impact on the Crude Oil Price and the Rise of Consumer Price Index: Case Study for Six European Countries," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    4. Sadek Boussena & Catherine Locatelli, 2016. "Guerre des prix ou instrumentalisation de l'incertitude sur les prix : quelle stratégie pour un fournisseur dominant sur le marché gazier européen ?," Working Papers hal-01284518, HAL.
    5. Boussena, S. & Locatelli, C., 2017. "Gazprom and the complexity of the EU gas market: A strategy to define," Working Papers 2017-09, Grenoble Applied Economics Laboratory (GAEL).
    6. Talipova, Aminam & Parsegov, Sergei G. & Tukpetov, Pavel, 2019. "Russian gas exchange: A new indicator of market efficiency and competition or the instrument of monopolist?," Energy Policy, Elsevier, vol. 135(C).
    7. Locatelli, C., 2020. "Une lecture institutionnaliste de la réforme du secteur gazier russe," Working Papers 2020-04, Grenoble Applied Economics Laboratory (GAEL).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aleksei Valentinovich Bogoviz & Svetlana Vladislavlevna Lobova & Yulia Vyacheslavovna Ragulina & Alexander Nikolaevich Alekseev, 2018. "Russia s Energy Security Doctrine: Addressing Emerging Challenges and Opportunities," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 1-6.
    2. repec:zbw:bofitp:2017_002 is not listed on IDEAS
    3. Muhammad Atta-ul-Islam Abrar & Muhsin Ali & Uzma Bashir & Karim Khan, 2019. "Energy Pricing Policies and Consumers’ Welfare: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 24(1), pages 1-28, Jan-June.
    4. Ocelík, Petr & Osička, Jan, 2014. "The framing of unconventional natural gas resources in the foreign energy policy discourse of the Russian Federation," Energy Policy, Elsevier, vol. 72(C), pages 97-109.
    5. Sergey Chernavsky & Oleg Eismont, 2009. "Is Gas Cartel's Profitable for Russia? (A Case of European Gas Market)," Journal of the New Economic Association, New Economic Association, issue 1-2, pages 127-149.
    6. Crow, Daniel J.G. & Giarola, Sara & Hawkes, Adam D., 2018. "A dynamic model of global natural gas supply," Applied Energy, Elsevier, vol. 218(C), pages 452-469.
    7. Daniel J. G. Crow & Kris Anderson & Adam D. Hawkes & Nigel Brandon, 2018. "Impact of Drilling Costs on the US Gas Industry: Prospects for Automation," Energies, MDPI, vol. 11(9), pages 1-13, August.
    8. Orlov, Anton, 2015. "An assessment of optimal gas pricing in Russia: A CGE approach," Energy Economics, Elsevier, vol. 49(C), pages 492-506.
    9. Shengqing Xu & Tao Wang, 2017. "On energy equity and China’s policy choices," Energy & Environment, , vol. 28(3), pages 288-301, May.
    10. Anca Gabriela Ilie & Marinela Luminita Emanuela Zlatea & Cristina Negreanu & Dan Dumitriu & Alma Pentescu, 2023. "Reliance on Russian Federation Energy Imports and Renewable Energy in the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 780-780, August.
    11. Marina Tsygankova, 2007. "The Export of Russian Gas to Europe: Breaking Up the Monopoly of Gazprom," Energy and Environmental Modeling 2007 24000062, EcoMod.
    12. Zha, Donglan & Kavuri, Anil Savio & Si, Songjian, 2018. "Energy-biased technical change in the Chinese industrial sector with CES production functions," Energy, Elsevier, vol. 148(C), pages 896-903.
    13. Edward J. Balistreri & Zoryana Olekseyuk & David G. Tarr, 2017. "Privatisation and the unusual case of Belarusian accession to the WTO," The World Economy, Wiley Blackwell, vol. 40(12), pages 2564-2591, December.
    14. Madurai Elavarasan, Rajvikram & Pugazhendhi, Rishi & Irfan, Muhammad & Mihet-Popa, Lucian & Campana, Pietro Elia & Khan, Irfan Ahmad, 2022. "A novel Sustainable Development Goal 7 composite index as the paradigm for energy sustainability assessment: A case study from Europe," Applied Energy, Elsevier, vol. 307(C).
    15. Tavana, Madjid & Pirdashti, Mohsen & Kennedy, Dennis T. & Belaud, Jean-Pierre & Behzadian, Majid, 2012. "A hybrid Delphi-SWOT paradigm for oil and gas pipeline strategic planning in Caspian Sea basin," Energy Policy, Elsevier, vol. 40(C), pages 345-360.
    16. Zeynep Clulow & David M. Reiner, 2022. "Democracy, Economic Development and Low-Carbon Energy: When and Why Does Democratization Promote Energy Transition?," Sustainability, MDPI, vol. 14(20), pages 1-22, October.
    17. Edward J. Balistreri & Zoryana Olekseyuk & David G. Tarr, 2017. "Privatisation and the unusual case of Belarusian accession to the WTO," The World Economy, Wiley Blackwell, vol. 40(12), pages 2564-2591, December.
    18. Korppoo, Anna, 2018. "Russian associated petroleum gas flaring limits: Interplay of formal and informal institutions," Energy Policy, Elsevier, vol. 116(C), pages 232-241.
    19. Christian Growitsch & Harald Hecking & Timo Panke, 2014. "Supply Disruptions and Regional Price Effects in a Spatial Oligopoly—An Application to the Global Gas Market," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 944-975, November.
    20. Zhishuang Zhu & Huaming Zhang & Gege Tao & Feng Yu, 2016. "Effects of gas pricing reform on China’s price level and total output," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 167-178, November.
    21. Marina Tsygankova, 2007. "When is Mighty Gazprom Good for Russia?," Discussion Papers 526, Statistics Norway, Research Department.

    More about this item

    Keywords

    Russia; Natural gas; Gazprom;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:663-670. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.