A Tale of Two Gazproms

In an article in The European Energy Review the journal’s lead analyst Matthew Hulbert argues that the South Stream pipeline is the beginning of the end of Gazprom's dominance. With the final decision to build South Stream, Gazprom has finally won battle against the EU for the Southern Corridor. On a global scale, however, Moscow's move to stitch up the European market through an uneconomic pipeline is a monumental mistake. President Vladimir Putin and Gazprom CEO Alexei Miller are blind to all parts of the gas market that really matter: LNG, unconventional gas, hub trading and Asia. In that respect, the European Commission's anti-trust probe into Gazprom is a waste of resources as Gazprom's market power will collapse by its own.

Thursday, November 29, 2012