RUSSIAN DOMESTIC GAS MARKET BEGINS TO GENERATE VALUE
Fundamental changes are taking shape in the Russian gas industry, driven by a turnaround in the country's enormous domestic gas market. The effects are likely to reverberate far beyond Russia's borders. This CERA Decision Brief takes a closer look at how the Russian domestic gas market works and how it is evolving from the subsidy provider that it was in the 1990s into a large potential source of value for investors in the future. CERA's key conclusions are
- The domestic market is growing both in size and value as consumption and prices increase while payment discipline remains strong.
- Gazprom remains the dominant player and gatekeeper of the domestic market.
- At the same time, an unregulated tier of the market where independent gas producers and suppliers operate is expanding.
- But it remains to be seen who will capture the emerging value: Gazprom, the state, or independent gas producers.
