Industry Trend Analysis - Gazprom Concessions To Preserve Market Share - JUNE 2017

BMI View : Gazprom ' s proposed settlement of the EC antitrust case falls in line with its increa singly concessional approach to wards Europe , as larger and more diversified supplies tip the balance of power away from the region ' s traditional pipeline suppliers.

Europe's gas markets have grown increasingly competitive, due to improved integration and more diversified sources of supply. This is evident in several key trends, including pricing and contract evolution and increasing hub liquidity. In turn, this is forcing a more concessional approach from the region's traditional pipeline suppliers. In this sense, proposed settlement of the Gazprom antitrust case (over alleged anti-competitive behaviour in the Central and Eastern Europe (CEE) region) does not represent any shift in the company's engagement with Europe. Rather, it is a continuation of an ongoing trend, in which the Russian SOE exercises increased flexibility with its western buyers.

To resolve the antitrust case Gazprom has proposed a number of commitments:

  • Gazprom Dominance Clear
    CEE Gas Imports From Gazprom In 2016, bcm, And % Share Of Domestic Consumption
    * values above 100% imply stock builds. Source: BMI, Gazprom

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