STRATEGIC ANALYSIS OF COMPETITION AMONG RUSSIAN GAS PRODUCING COMPANIES: IMPLICATIONS FOR DOMESTIC AND INTERNATIONAL GAS MARKETS

摘要

Competition landscape in the Russian natural gas industry is dramatically changing.Two large independent producers – Novatek and Rosneft appeared in the domestic market,while the state-owned monopoly company-Gazprom lost almost half of it.With high prices in the European market,Gazprom paid little attention to shrinking domestic share,stayed more focused on risks of Third Energy Package(TEP)that came into force in 2011 to strategically diversify gas import.The situation changed after 2014 with oil price meltdown triggered lagging oillinked long-term(LT)gas export contracts.The emergence of shale producers resulted in new competing LNG export projects in the USA and set the basis for arbitrage in regional gas markets.Losing competitiveness in both traditional markets,Gazprom renewed its interest in domestic gas market reforms towards price deregulation.In 2016 the Federal Antimonopoly Service of Russia(FAS)proposed first stage liberalization of the local market,declaring the increasing competition and consumer surplus as the primary goals.Gazprom in its turn actively supported this initiative and increases traded volumes on a captive gas exchange-SPIMEX establishing a new pricing benchmark.At the same time,efforts to repeal the price floor in three key Russian regions showing an intense clash of interests in the multi-stage game for higher profits.The natural gas pipeline system in Russia is inherited from the USSR and was built as one connected network from the main resource base of West Siberia,Nenets Autonomous Region,and Yamal to the prime European markets.Discussions about the reorganization of energy markets including the gas have started since the countries became independent,recognizing the inefficiency of the old system.