period of extensive growth in the 2000s, the Russian gas industry is now
facing numerous challenges. Mounting competition by independent
producers and the development of new production by Gazprom, combined
with stagnating domestic demand and weakening export markets, have
created a situation of overproduction, made worse by western sanctions
and low oil and gas prices. Expansion to the East thanks to the recent
China deal is not expected to provide much relief before 2024. The
coming decade will be critical for the industry and its outcome will
largely depend on the government's pricing and institutional policies
but the role of the state should remain essential.
New CEDIGAZ report “Russian Gas Market: Entering New Era” by Tatiana
Mitrova (Russian Academy of Sciences) and Gergely Molnar analyses the
ongoing changes in the Russian industry and the challenges to be met.