Yuriy ZaytsevPublished in:
Public-Private Partnership
– Volume 2, Number 4 (October-December, 2015)

JEL classification: L32, L72, Q37

Keywords: alternative fuels, BRICS, cooperation of business and government, gas balance, LNG, markets of natural gas, russia


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Abstract:

The article analyzes the options for the formation of new partnerships in the production and consumption of natural gas by BRICS countries in the framework of established modes of engagement between the business and government in this area. The author analyzes the current situation at the natural gas BRICS markets, assesses available resources, the volume of production and consumption, the structure of markets and the export-import balance. In conclusion the author proposes a set of recommendations on cooperation with Russia and the other BRICS countries at the natural gas markets.

Highlights:

►in all BRICS countries the businesses engaged in the extraction and transportation of natural gas is highly dependent on the state
►basically, gas markets of BRICS countries have peculiar features of oligopolistic and monopolistic structures in certain parts of the added value chain of the gas
►the domestic gas prices of BRICS countries are higher than in other OECD countries, and the ongoing burden of price reforms, as a rule, rests on the end-users
►the development of infrastructure will allow the BRICS countries to implement reforms associated with the liberalization of the gas markets and the provision of third party access to pipelines, including foreign investors, more effectively
►the guarantee, relating to the implementation of international contracts, will by ensured by a strong position of the state in the conditions of the existing forms of cooperation between the state and business in the industry

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