OAO Gazprom conceded some arguments for allowing competition in shipping LNG abroad after President Vladimir Putin called for easing.
“Arguments can be found, concerning LNG and the monopoly, on the possibility of preparing a program with Gazprom’s participation,” Gazprom Deputy CEO Alexander Medvedev told reporters June 28 in Moscow.
Putin has told the government to gradually open LNG exports as Russia targets a larger share of growing Asian LNG markets. He presided over China National Petroleum Corp.’s agreement to enter the Yamal LNG project, led by Novatek, and buy the fuel, at an investment forum in St. Petersburg on June 21.
Gazprom is coming under increasing pressure as Novatek and state-run Rosneft plan to ramp up natural gas output and develop LNG production.
It may be the first time Gazprom has publicly acknowledged the idea, Alexander Kornilov, an oil and gas analyst at Alfa Bank, said by e-mail June 26. Gazprom “didn’t support this idea” previously, he said.
Gazprom opposes any liberalization in pipeline exports as a risk to Russia and the company itself, Medvedev said. The company, which owns the national pipeline network, forecast its European exports will rise to 160 Bcm in 2013 after a 10% increase in the first half from the same period last year.
Gazprom controls Russia’s only LNG plant on Sakhalin Island, north of Japan. Rosneft is looking at building a facility in that region, while Novatek’s project is in the northern Yamal region.
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