Gazprom admitted that US sanctions threatened the new company projects, including the expansion of Nord Stream and Turkish Stream, as well as servicing the old gas pipelines Nord Stream and Blue Stream. The threat was recorded in the quarterly a statement of the risks sent to the company’s shareholders. According to the management of the gas giant at this stage, there is no change in the strategic direction of the activity or the change in the priority projects.
The European Commission’s action on gas market liberalization is also being taken into account as a risk to company’s European business. The company notes that they have planned a more active marketing policy and will develop “new forms and methods of trading”, including short-term contracts, stock exchange deals and more.
Gazprom exports to Europe a large part of the gas extraction.
The company is concerned also from the US shale gas production, as well as its growing role on the commodity market in 2016-2017. Howeever, they note that most of the US exports are directed to South America and there is no remarkable volumes on European and Asian market, which are targets of Gazprom.
“The start of commercial shale gas production in Europe in the medium term is unlikely”, adds the report.
The document also noted a significant reduction in the market capitalization of Gazprom, which wiped out 0.8 trillion rubles in one year – from 3.6 trillion rubles by the end of 2016 to 2.8 trillion rubles in September 2017, but no new financial risks were reported for the activity during the third quarter of the year.
The cost of natural gas will depend on a number of factors, including the political and economic problems in the oil-rich countries and the regulation of oil markets (both OPEC and non-member countries) as well as plans for the development of nuclear headquarters and meteorological conditions in the coming months.