The purpose of Gazprom in the UK is to win 20 percent of the gas market, Alexander Medvedev, who is the deputy chairman at Gazprom management committee, says from time to time.
Photo: Dmitry Lekay
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Gazprom Reaches UK Restaurants, Stores
Russia’s gas monopoly, Gazprom, has announced the purchase of two-thirds of the client base belonging to British Pennine Natural Gas Ltd. (PNG). PNG is a mini-trader selling 31 million cu meters of gas a year to heat restaurants, stores and hotels.
Gazprom officially announced yesterday it bought out retail business of PNG in an effort to widen direct retailing to British commercial and industrial users. Gazprom Marketing and Trading Ltd. (GMT, London, Gazprom’s stake of 100 percent) will transfer the portfolio of roughly 600 clients to its own accounts. At the same time, GMT cut a deal with Natural Gas Shipping Services Ltd. for administrative services related to gas deliveries to British consumers.
Acquisition of PNG is in line with Gazprom’s strategy to reach end users of Western Europe and ensure additional margin comparable to wholesale sales of gas on border, representatives of Gazprom explained.
PNG is a private firm with around 900 clients, including some big companies, restaurant networks, hotels, shops. 2005 gas deliveries amounted to 31 million cu meters.
Gazprom’s sales in the UK reached 4 billion cu meters in 2005. The gas monopoly intends to expand to 5 billion cu meters this year and up to 10 billion cu meters in 2010, but not on the retail market though.
The purpose of Gazprom in the UK is to win 20 percent of the gas market (between 20 billion cu meters and 25 billion cu meters) and acquire firms working with end users there, Alexander Medvedev, who is the deputy chairman at Gazprom management committee, makes clear from time to time. Actually, Gazprom was targeted at big traders and backbone consumers, such as Scottish Power and Centrica, but wasn’t backed up by the UK authorities. Having failed to win access to big consumers, Gazprom might have changed tactics and shifted to local traders.
www.kommersant.com
All the Article in Russian as of June 23, 2006
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