Alternative gas posing a tough challenge for Gazprom

Alternative gas posing a tough challenge for GazpromAs indicated by data, Shale and coal-bed methane gas projects in the United States could undermine the global status of Russian energy giant Gazprom.

According to the reports of Russian business daily newspaper Vedomosti, U. S. alternative gas projects produced more than 2.6 trillion cubic feet last year, compared with 2 trillion cubic feet for Russian producers.

Natural gas locked in rock formations, called Shale gas, is seen as a boon especially for U. S. markets as Washington works to reduce dependence on foreign suppliers.

The newspaper further said that alternative gas projects are prevalent throughout North America, as well as India, South Africa and parts of Eastern Europe.

With businesses eyeing the expanding shale and coal-bed methane gas market, Gazprom's position as the largest natural gas supplier in the world could be challenged.

Europe is looking for its own natural gas alternatives, pushing for the storied Nabucco gas pipeline to bring non-Russian gas through Turkey.