Gazprom will make room for its rivals Novatek and Rosneft to compete on the Asian gas market, reports Reuters.
President Vladimir Putin announced on Friday the gradual reduction of Gazprom’s monopoly on the natural gas market.
The state-owned giant is currently guaranteed the stranglehold on exports of pipeline gas and LNG under a 2006 law.
“We offer to lower restrictions gradually on liquefied natural gas exports,” Putin told an economic forum in St Petersburg.
The announcement followed the news of Novatek striking a new deal with China on supply of liquefied natural gas (LNG).
In turn, China National Petroleum Corp (CNPC) agreed to buy a 20 percent stake in Novatek’s $20 billion Yamal-LNG project in northwest Siberia.
Gazprom is planning an expansion in Asia because of declining European markets, which form the core of its gas exports.
Its businesses have already been threatened by Novatek and Rosnefts successfully lobbying for LNG deals in the Far East, as well as the emerging demand for frozen gas in the Asia-Pacific.
Recommended for you
