Page 6 - FSUOGM Week 35 2021

FSUOGM COMMENTARY FSUOGM

Rosneft's Sechin pushes for access

to European gas market

Sechin has been lobbying for access to Gazprom's export pipelines for years

RUSSIA RUSSIA’S most influential oilman Igor Sechin, in foreign markets, potentially driving down
head of state oil group Rosneft, is once again revenues.
WHAT: pushing the government to allow the company However, Sechin’s latest effort comes after a
Rosneft is seeking access to export gas by pipeline, in spite of Gazprom’s German court denied Gazprom’s nearly-com-
to foreign gas markets. monopoly over these supplies, Kommersant plete Nord Stream 2 gas pipeline to Germany an
reported on August 27. exemption from EU energy market rules. This
WHY: Rosneft, though mainly focused on oil, has could mean that the Gazprom has to offer some
The company wants to been working for years to build up its natural gas of Nord Stream 2’s capacity to other Russian
secure lucrative sales in business, to provide a hedge against oil market suppliers, even though Russian law at this stage
Europe. volatility. But it has had difficulty advancing new makes that impossible.
projects as domestic gas prices offer a low return.
WHAT NEXT: In a major breakthrough, though, the company The proposal
Gazprom's problems with finally brought on stream the next phase of its According to Kommersant, Rosneft has asked
EU rules at Nord Stream ambitious Rospan development in Western permission to deliver 10bn cubic metres per year
2 offer the company an Siberia earlier this year, and will soon have some of gas to Europe and is prepared to pay increased
opening. supply spare. mineral extraction tax (MET) on these volumes.
Sechin and his company have long coveted Sechin made the appeal in a letter to Russian
Gazprom’s role as Europe’s biggest gas supplier. President Vladimir Putin that was seen by the
But despite years of lobbying efforts, he has failed newspaper.
to convince the government to liberalise pipe Gazprom’s monopoly would technically
gas exports. Moscow fears that doing so would remain in force, according to Sechin’s proposal.
mean Russian gas competing with Russian gas Rather, Rosneft would sign an agreement with

P6 www. NEWSBASE .com Week 35 01•September•2021