Gazprom 'must raise its game by shifting focus from EU to Asia'

St Petersburg, Russia: Russian gas behemoth Gazprom must raise its game by penetrating the swiftly growing markets of Asia, after a fall in exports to European Union customers, according to Russia's energy tsar.

Gazprom usually supplies a quarter of the European Union's gas needs but exports tumbled last year as some customers turned to cheaper alternatives such as liquefied natural gas on the growing spot market.

In a sign of the seriousness with which Moscow views the changes to the world gas market, Deputy Prime Minister Igor Sechin called on EU customers Gazprom's biggest source of revenue, to give a clear projection of future demand.

"We would like to understand the long-term projection of consumption," Sechin, the official in charge of Russia's mighty oil, gas and metals sector said in St Petersburg.

"The winter was hard and a host of partners started to replace gas with cheaper spot prices, but spot is temporary," said Sechin, who is also Board Chairman at Russia's biggest oil company, Rosneft. "For stability you have to pay."

Gazprom sales to Europe fell to $42 billion (Dh154.22 billion) in 2009, according to preliminary data, down from $65 billion in 2008, though Gazprom says its sales are improving this year.

Sechin, 49, said the market conditions showed Gazprom, the world's largest gas producer, had to boost its effectiveness by entering new markets and spoke of the intense interest China, Japan, Vietnam and South Korea had in securing Russian supplies. "

As market conditions show, Gazprom must increase the effectiveness of its work by diversifying its markets," said the Deputy Prime Minister.

• $42b sales to EU in 2009
• $65b sales to EU in 2008