The shale gas revolution forces Gazprom to reduce prices in Europe

Russia´s Gazprom has been forced to lower the price it charges for the gas delivered to European Union customers and Turkey:

Deputy chairman of Gazprom Aleksandr Medvedev said "our partners asked us to revise our prices and…what we did is correct the parameters of our formula, which lead to the relative price reduction of 10 percent on the average."
Medvedev said "the new price will ensure Russian gas remains competitive."
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Complaints by some EU countries that Gazprom was charging too high a price have been strengthened recently by the success in the U.S. of shale gas production.

The U.S. canceled plans to import liquefied natural gas from Russia after it became clear domestically produced shale gas could fill U.S. needs.

Russia reoriented that gas intended for the U.S. to markets in Europe but Poland, for example, is going ahead with exploration for shale gas Gaand Ukraine has already produced small amounts in its initial stage of development.

Gazprom continues to cast doubts on the viability of shale gas with Gazprom chief Aleksei Miller saying in his blog on the Gazprom website earlier this month "the so-called shale gas revolution is one and the same thing as American Hollywood."

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PS

Miller may still continue to belittle the importance of shale gas. But the fact that Gazprom - which was hoping to dominate the European gas market - now has been forced to reduce the price in Europe, speaks volumes about the credibility of its childish denial of reality. And this is only the beginning of the shale gas revolution ...