Prospects for Exports of Russian Gas

An author reviews key new trends at Russia's domestic gas market and their implications for Russia's gas exports and for future dynamics of gas production in Russia. The article also looks at those changes at Russia's existing export markets Europe and FSU - and potential new markets - primarily China - that have already happened or are coming. An author concludes that competition with the Russian gas will only keep growing, particularly because of the EU general policy to limit the role of natural gas in its fuel mix, and its particular policies targeting reduction of dependence on Russian gas. LNG growth will make this competition ever more severe. Russian exporters will have to utilize the full potential of cost reduction.