Gazprom's Ambitions in the UK: A Threat to Energy Security?
The British government, led by Trade and Industry Secretary Alan Johnson, is preparing to block a takeover bid by Gazprom, the Russian state-controlled energy giant, of Centrica, the parent company of British Gas. Meanwhile, Gazprom's boss, Alexei Miller, has warned against politicising gas supply, hinting that Russia might redirect its energy exports to North America and China instead. The UK's energy sector is at a crossroads, with supplies from the North Sea dwindling and the Middle East descending into turmoil.
Key Takeaways:
- Gazprom, the Russian state-controlled energy giant, controls over 90% of Russia's natural gas and a significant portion of its oil through Sibneft, with its CEO, Alexei Miller, a protege of President Vladimir Putin.
- Gazprom's primary goal is to secure a substantial share of the western European gas market, particularly in the UK, through a planned pipeline expected to reach British shores by 2013.
- The company's strategy involves using energy exports as a geopolitical tool, as evident in its past dealings with Ukraine and Belarus.
- Gazprom's stance is in direct contrast to the UK's open economic borders policy, which accepts foreign investors and companies as long as their motives are transparently commercial.
- The company's recent actions, including vetoing BP's plans to build a pipeline from the Siberian Kovytka gasfield to China, demonstrate its preference for maintaining control over energy resources.
- The proposed takeover of Centrica, the parent company of British Gas, would threaten the UK's energy security and give Gazprom significant influence over the domestic market.
- The UK government's decision to block the takeover bid reflects concerns about the potential risks associated with Gazprom's involvement in the energy sector, particularly given its ties to the Russian state.
Statistics:
- Gazprom controls >90% of Russia's natural gas and a sizeable chunk of its oil through Sibneft.
- The planned pipeline from Gazprom is expected to reach British shores by 2013.
- Gazprom vetoed BP's plans to build a pipeline from the Siberian Kovytka gasfield to China.
- The UK's energy sector is facing declining supplies from the North Sea, with the Middle East experiencing increasing turmoil.
Sources:
- "The Observer" article, undated
- "Boris Yeltsin's government" when [Gazprom's first boss] Viktor Chernomyrdin was prime minister (1993-1998)
- Undated news articles about Gazprom's deal with Chinese gas fields
Note: The text does not provide exact dates for many of the events and developments mentioned.