Gazprom seeks 30 pct of Europe's gas market

MOSCOW, Mar 29 (Reuters) Russian gas monopoly Gazprom wants to boost its share of Europe's gas market to 30 per cent from 25 per cent by buying into gas storage, gas marketing and power firms, a company source said on Wednesday.

The target was cited in an export strategy document which management was due to present to a meeting later on Wednesday of Gazprom's state-controlled board for approval, the source told Reuters.

The world's largest gas producer has previously said it would only try to maintain its existing share in the growing European market and try to expand in Asia and the United States, mostly by supplying liquefied natural gas.

The news comes months after Gazprom's pricing dispute with Ukraine led to temporary gas cuts across Europe, prompting calls for the European Union to seek ways to reduce the region's dependence on Russian gas.

The EU has said it wants a broader energy deal with Russia and called on Moscow to open up its gas pipelines to competition. But the Kremlin ruled out such an option and made it clear it would remain the main source of gas for Europe for decades to come as production declines in other regions.

''Gazprom's success in the endeavour will hinge on its bargaining position and the financial resources available to buy foreign assets,'' said Valery Nesterov from Troika Dialog brokerage.

''Another crucial factor will be whether European governments will be willing to let Gazprom take a larger slice of the European gas market,'' he added.

Vedomosti business daily cited on Wednesday the strategy document as saying Gazprom planned to ask its European partners to surrender a share of local distribution when renegotiating long-term supply contracts.

Such a tactic could further jeopardise the EU's attempts to liberalise gas markets and promote spot trading involving many competitors to bring gas prices down.

REUTERS SD HT1442