Bloomberg: Gazprom Says Rosneft LNG Expansion Risks Handing Asia Advantage

Russia’s two state-run energy giants are at loggerheads over expanding natural gas exports as the government tries to boost sales in Asia.

OAO Gazprom (OGZD), the only Russian gas exporter today, has written to the government asking it to block changes to the gas-export law that would let OAO Rosneft (ROSN) supply abroad from the Pechora liquefied natural gas project in northern Russia, according to a copy of the letter obtained by Bloomberg.

The bill “will strengthen the bargaining position of potential foreign buyers of Russian gas,” creating excess competition among suppliers from the country, Deputy Chief Executive Officer Valery Golubev wrote to the Energy Ministry. The government already eroded Gazprom’s monopoly last year, allowing two planned LNG projects, one led by Rosneft, the right to ship fuel abroad.
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