The Russian Gas Matrix

This book explores the impact on the Russian gas sector of changes in international gas markets, including the growth of competition and development of new sources of supply. It also assesses how Russian responses, in turn, impact the markets where Russian gas is sold. The volume is structured to reflect the Russian Gas Matrix described in OIES research: the shifting relationship between key elements of supply and demand for Russian gas. It includes chapters on demand for Russian gas in Europe, CIS importing countries, Asia, and the domestic Russian market, as well as analysis of sources of Russian gas supply, including Gazprom, other producers such as Novatek and Rosneft, and imports from Central Asia. It also considers the wider economic context of change in the gas sector, and addresses the key political and economic issues it faces, including the contribution of gas revenues and taxes to the Russian budget, the potential for changes to the structure of the domestic market and the export monopoly, the future of domestic gas prices and the balance of supply among Russian producers. The book aims to provide a detailed update to Jonathan Stern's The Future of Russian Gas and Gazprom (OUP, 2005) and to develop themes raised in Simon Pirani's (ed.), Russian and CIS Gas Markets and their Impact on Europe (OUP, 2009).PART 1: POLITICAL ECONOMY OF RUSSIAN GAS ; 1. The political and economic importance of gas in Russia ; 2. The evolving Russian gas matrix ; PART 2: THE IMPACT OF COMPETITIVE MARKETS ON RUSSIAN GAS ; 3. Russia's response to changes in the European gas market ; 4. The Russian domestic market ; 5. The FSU market and its changing relationship with Russia ; 6. Asia as a potential major new outlet for Russian gas ; 7. How LNG fits into Russia's gas strategy ; 8. Summary: Potential Market Influence on Russia's Gas Supply Strategy ; PART 3: RUSSIA'S GAS SUPPLY STRATEGY ; 9. Gazprom's supply strategy ; 10. The role of non-Gazprom Russian producers ; 11. Imports from Central Asia ; 12. Summary: The likely balance of Russian gas supply? ; PART 4: CONCLUSIONS ; 13. The changing balance of the Russian gas matrix and the reaction of the Russian state