Russia will gradually liberalize its gas market to
allow independent producers greater access to its gas pipeline system, but
state-controlled gas monopoly OAO Gazprom (GAZP.RS) will maintain its export
monopoly for the time being, Prime Minister Vladimir Putin said Tuesday.
"In the near future, we will try to liberalize the domestic gas
market," Putin said at an investors' conference in Moscow. "The
export monopoly will be maintained - in the medium term for sure, but not
forever."
State-controlled Gazprom, the world's biggest producer of natural gas, holds a
monopoly on the export of gas and owns Russia's huge gas pipeline system.
Putin said Gazprom's export monopoly is needed to fulfill long-term export
supply contracts and to guarantee returns on its investments in the Nord Stream
and South Stream pipelines.
However, he said Russia will make a gradual move toward liberalization to allow
independent producers greater access to its gas pipeline system.
"We will work towards equal access to Russia's gas infrastructure
system," Putin said. But he advocated a cautious approach to
liberalization, noting that granting equal access to its pipeline system will
lead to increased gas production by independent producers, which in turn may
push prices down and subsequently affect the state budget.