The domestic consumption of natural gas in Russia is expected to grow at a CAGR of 4% by 2012 due to high energy demand by power and manufacturing sectors and economic growth.
A new research report, "Russian Oil and Natural Gas Industry", from RNCOS, a leading market research company, predicts Russia's domestic natural gas consumption to grow at a CAGR of 4% from 2008 to 2012.
The report says that the demand for natural gas (power) from power and manufacturing industries is likely to fuel growth in the Russian oil & natural gas industry.
The Russian economy recovered from 1998 financial crisis after 2002, and several industrial activities like mineral extraction and manufacturing significantly expanded, says the report. As a result, rising domestic demand for energy and various products, gaining traction from increasing disposable income, has escalated the energy consumption in Russia in the last five years (2002-2007).
Moreover, as it has an advantage of low cost manufacturing in the Eastern Europe, Russia is anticipated to see more investment in its manufacturing industries in the years to come, which, in turn, will increase the power demand in the country.
The RNCOS research also says that Russia might see a rise in gas prices in coming years but the consumers will remain relatively inelastic towards price growth. Thus, the gas demand will not slump; rather, it will steadily increase in future. Consequently, the Russian natural gas industry will overwork to add to the current production level during 2008-2012. In addition, independent natural gas producers are expected to post high growth in future due to government support.
The report also provides rational forecast on petroleum product export, gasoline consumption, domestic natural gas prices, diesel consumption, natural gas transportation to Europe and Asia, natural gas production and natural gas production by independent producers and import of natural gas from Central Asia.
"Russian Oil and Natural Gas Industry" gives an in-depth analysis on the performance of the Russian oil and natural gas industry in the last few years and thoroughly discusses the driving factors, future prospects and concerned issues to help client navigate through the Russian oil & natural gas industry.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.
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