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Diversification of Russian gas export routes

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  • Alexei A. Makarov, Vladimir L. Likhachev

Abstract

The exportation of energy (i.e., gas) resources plays a vital role in the economic development in Russia. The major market for Russian gas exports is Western Europe, which has caused a considerable amount of concern amongst Russian officials. This paper presents different options for gas export routes for Russia and other CIS countries, taking into account market demand and supply, as well as future price developments in Europe and Asia. The approach is based on a system of dynamic interregional optimisation models for the gas industry. The models describe possible alternatives for the development of the gas sector, in combination with options for economic relations within the gas industry, while taking into account financial conditions of the main market players. The main finding is that gas companies in Russia and CIS countries can diversify their export routes to Asian markets, which could become as important as the European market in view of the higher export prices.

Suggested Citation

  • Alexei A. Makarov, Vladimir L. Likhachev, 2002. "Diversification of Russian gas export routes," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 18(1), pages 69-83.
    • Handle: RePEc:ids:ijgeni:v:18:y:2002:i:1:p:69-83
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