Financial Times: Taming Gazprom

When it comes to natural gas, Europe needs Gazprom – but Gazprom needs Europe, by far its most profitable market, even more. That gives Brussels real clout in its welcome antitrust investigation into suspected market abuses by the Russian giant in central and eastern European countries, where it has a stranglehold dating from Soviet times. The inquiry could have repercussions across the EU gas market.

The shale gas boom has transformed North America from gas importer to net exporter, freeing up supplies to come to Europe instead. But proliferating environmental bans on “fracking” technology means the outlook for shale development in Europe is less rosy than once appeared. EU research on Friday concluded that under a best-case scenario for shale, imports would continue to meet 60 per cent of Europe’s gas needs.  MORE