GAZPROM: Gas prices to double prior to 2012

29. August 2010. / Uncategorized

Gazprom’s Vice President Aleksandar Medvedev assessed that, prior to 2012, the prices of gas would reach the level from before the crisis.

In an interview for daily paper Financial Times Deutschland, Medvedev said that Gazprom wanted to increase its share in European market.

– We assume that Russian gas will cover over 30% of European gas market in 2020 – Gazprom’s Vice President announced and pointed out that, in the long run, the demand for gas should be increase both in Russia and abroad.

The paper also writes that, if the price prognosis comes true, that means that the prices will be nearly twice as big as current wholesale prices, and points out that some European gas suppliers are already increasing the price of that raw material at the moment.

FTD underlines that Medvedev’s words are very important in that field because Gazprom provides for nearly one quarter of European gas consumption.

That concern follows the price trends, but it cannot dictate them directly.

During the global economic crisis, demand in the industry dropped, while the appearance oil shale gas from the USA led to excessive supply in the market, of which result was a drop in price of that raw material.

– Many experts agree with Medvedev’s prognosis. Earth gas is considered the cleanest fossil fuel. In addition, gas power plants can be brought in accord with wind power plants without a problem – FTD explains.

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