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    The Moscow Times: Gazprom Split Mulled as a Response to Shale Gas Revolution

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Summary

The Kremlin may respond to the "shale gas revolution" by splitting Gazprom into two companies in charge of gas production and transportation.

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Press Notes

The Moscow Times: Gazprom Split Mulled as a Response to Shale Gas Revolution

The Kremlin may respond to the "shale gas revolution" by splitting Gazprom into two companies in charge of gas production and transportation, a news report said Monday.

As Gazprom's clout on global markets is decreasing as a result of growing shale gas production and falling prices, the company might have to make concessions to the European Union by accepting its Third Energy Package, under which production and transportation must be controlled by separate companies.

Six months after President Vladimir Putin spoke out against the idea at the "Russia Calling" business conference, consultations are being held suggesting that the Kremlin may change its stance concerning the future of the gas monopoly, the Kommersant-Vlast magazine reported.

The consultations involve several key government officials and executives, including the president's economic aide Elvira Nabiullina, Rosneft CEO Igor Sechin and Gazprom CEO Alexei Miller, several government officials familiar with the situation said.  MORE