The collapse of oil prices and competition in the European gas market provoked reducing of Russian gas price for the region to the levels of September 2004.
At the same time, Bloomberg informs that the 20% discount has become the largest in 8 years.
According to the agency’s data from February, Gazprom currently holds 30% of the European market, and plans to export a record amount of fuel to Europe in 2016.
Previously, the IEA stated that Gazprom‘s gas contracts, tied with oil price, might not be able to compete in the next year, as the market will adapt to a serious oversupply of raw materials, which may continue after 2020. According to the IEA, over the next three years, the American liquified natural gas may be the cheapest option in the gas market in Europe.