Russia's state-controlled gas firm OAO Gazprom (GAZP.RS) could spend $20 billion in 2009 to buy Central Asian gas, instead of the $8 billion it will pay this year, the Kommersant daily said Wednesday citing the company's Chief Executive Alexei Miller.
Gazprom is forced to pay higher prices for the natural gas it imports from Turkmenistan, Kazakhstan and Uzbekistan, amid growing competition with the West and China for access to the ex-Soviet countries' gas, the paper said.
While Russia holds the world's largest gas reserves, lack of development means it is forced to supplement its supplies with imports from Central Asia in order to meet rising internal demand for Russia's growing economy and to fulfill export quotas.
However, Gazprom could benefit by reselling gas to Europe, as forecasts show that gas prices in the E.U. will grow to $500 per 1,000 cubic meters by the end of this year, the paper said.