New gas firm to be controlled by Gazprom

Too have more control?

As if they didn't have enough control over Russia's gas industry already, Gazprom might control a new gas company to be created out of three already existing firms it has been reported today.

The daily Kommersant reports that Gazprom would have a 51 percent stake in the company, while the rest would be split between independent gas producer Itera and Russian businessman Farkhad Akhmedov.

The company's annual gas production would match that of Russia's Novatek, and would be established on the basis of Sibneftegaz, Purgaz and Nortgaz companies, the paper said.

It is an interesting move for the company, especially as it was recently written in the Moscow Times that the gas giant needs a drastic structural overhaul if it is to survive in the long term.

Ander Aslund wrote that in May 2008, Gazprom’s market capitalization exceeded US$350 billion, but today it is a 'mere' US$135 billion. Meanwhile, the Russian oil sector increased its production and exports last year, but gas exports fell by 11 percent with Gazprom’s production decreasing by 16 percent as a direct result of low demand.

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Could Gazprom be in danger of collapse? | Gazprom and Badrah, Rosneft and Sevastyanovo| Gazprom's Korean supply deal

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