Analysts are predicting that Russia's Gazprom may be about to start a price war in the global gas market. With US liquefied natural gas (LNG) supplies hitting the market later this year, the Russian gas giant may copy the Saudi Arabia oil model. The Saudis have been trying for years to get their hands on more of Iran's gas. If it takes this path, it will have significant repercussions for the global energy markets and an all-out price war in the European gas market would have a ripple effect across other commodities and regions as well as threaten the US LNG industry.
Analysts are predicting that Russia's Gazprom may be about to start a price war in the global gas market. With US liquefied natural gas (LNG) supplies hitting the market later this year, the Russian gas giant may copy the Saudi Arabia oil model. Indeed, it may be economically rational for the company since already low prices in the European gas market means it could easily push prices to a level at which it would be unprofitable to ship LNG from the US, and thereby defend its market share in the region. If it takes this path, it will have significant repercussions for the global energy markets and an all-out price war in the European gas market would have a ripple effect across other commodities and regions as well as threaten the US LNG industry.