Gazprom: Turning Western Partners into EU Lobbyists

As reported by The International Herald Tribune, Gazprom is working to turn its Western partners into a lobbying network to try to overcome the European Union’s worries about its aggressive expansion plans.  As the article notes:

“…Companies working with Gazprom in its Siberian fields may be happy to oblige, analysts say, eager to strengthen their positions in Russia and in turn help the company, the world’s largest gas producer, gain assets in Europe to achieve its dream of becoming a trillion-dollar company.

Chris Weafer, chief strategist at the UralSib bank in Moscow, said: “Gazprom is creating a lot of lobby groups in the form of its partners. Instead of Gazprom having to knock on the door of the European Parliament, Total and BASF will do it on their behalf.”

Gazprom and BASF, the German chemical company, recently started production at their joint pas project in Siberia called Achimgaz, which will ultimately produce 7.5 billion cubic meters, or 265 billion cubic feet, per year. That is equal to almost a tenth of the gas consumption in Germany.

Eni, the giant Italian energy company, recently signed an agreement with a Russian power generator to sell gas it will produce from Arctigas, its future venture with Gazprom.

Valery Nesterov, an energy analyst with the Troika Dialog investment house in Moscow said: “It may be a paradox, but Gazprom’s top lobbyists in Europe are its competitors such as Eni or GDF. They suffer themselves from gas market liberalization and understand Gazprom better than government officials.”

Tanya Costello, the director for Europe and Eurasia at the Eurasia Group, a consulting firm, said in London, “For Gazprom, one of the benefits of the cooperation is access to downstream assets in Europe.”

The ambitious chief executive of Gazprom, Alexei Miller, knows better than anyone else the importance of cross-border ventures to open the door to the EU in return.

“We believe that success rests in organizing vertically integrated chains that run from the point of production to the end user, with each link in the chain representing a joint business between energy resource producers and consumers,” Miller said…”




This entry was posted on Friday, July 25th, 2008 at 12:53 pm and is filed under ENI, Gazprom, Total.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

Comments are closed.


ABOUT
WILDCATS AND BLACK SHEEP
Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.