Gazprom goes back: price discrimination of consumers, delay of new projects and often gas wars have lowered the monopoly in price

Gazprom’s capitalization fell 30% within a year referring it to one of the cheapest large oil and gas corporations of the world, UBS counted. The capitalization of the most expensive player – ExxonMobil – is about 4 times higher, Nezavisimaya gazeta writes.

Gazprom’s capitalization is falling down due to the general negative background of news, among which is the reconsideration of conditions by the long-term contracts and the postponing of the period of the Shtokman deposit’s development for 2019 which was considered a new point of the monopoly’s production growth and expansion to the new sales markets, first of all the USA, analysts agree. The revolution of the cheap shale gas has in fact closed the American market for Gazprom, it is forced out from the traditional European market by consumers, that stay for the price fall, and new producers. The average price of 1 thousand cubic m of gas in the USA in 2012 was $80 against $400 in Europe (of Gazprom - $381.2, according to Oxford Institute for Energy Studies).