The two main exporting state-controlled natural gas exporters are Gazprom and Qatargas. The former mainly exports natural gas via pipelines to meet domestic demand and demand in Europe, but is increasingly increasing its exports of LNG to the Asia Pacific region and increasing its presence in third country natural gas projects. In order to hedge against potential competition Gazprom is diversifying its natural gas markets. The advantage of Gazprom is that it has a presence in the entire supply chain for natural gas including power generation. It also has coal bed methane and biogas projects to diversify further, along with traditional oil and gas. The company’s strategy to increase its exports is taking place as many major gas producing countries have increased their domestic gas production, creating greater demand for natural gas supplied from other countries.
By contrast, Qatargas principally supplies LNG to markets around the world.
Both companies commercially produce by-products from natural gas.
Gazprom State Gas Concern was established in 1989. Four years later it was set up as the Gazprom Russian Joint Stock Company and was renamed the Gazprom Open Joint Stock Company in 1998. The group covers the entire supply chain from gas production to transportation to markets and also to its own power generation plants in Russia. Gazprom also produces oil and other hydrocarbon products for example lubricants and by-products from oil and gas production such as sulphur.
Europe is a major market for the company and Gazprom and the RWE are currently in talks to set up a joint venture consisting of existing and new-build gas and coal-fired power plants in Germany, the UK and Benelux.
However, domestic demand still accounts for the bulk of natural gas sales.
