Gazprom eyes 15 pct of Irish commercial gas market

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MOSCOW | Fri Jan 11, 2008 5:22pm GMT

MOSCOW Jan 11 (Reuters) - Russian gas export monopoly Gazprom (GAZP.MM) is interested in taking up to 15 percent of the commercial Irish gas market, its British unit said on Friday. "We're expanding and obviously Ireland is very close to the UK ... There is room in the market for new entrants and we'd like to have 10-15 percent of its commercial business," said Philip Dewhurst, spokesman for Gazprom Marketing and Trading (GM&T), which has offices in London and Manchester.

Last June, GM&T received a licence from the Irish government to operate in its gas market, most of which is controlled by state gas supplier Bord Gais, with which it would have to compete for market prices.

Irish media reports said GM&T would enter the Irish market in 2008, though the company declined to give a timeframe.

State-controlled Gazprom is the world's biggest gas producer and provides Europe with a quarter of its gas needs.

While Ireland, with a population of 4 million, is a small market for Gazprom, it is an extension of the company's expansion plans in Britain.

Gazprom has previously said it wants to take its share of the British market to 10 percent, or 10 billion cubic metres (bcm) per year, up from the current 4 bcm.

Analysts say Ireland's location at the far end of the European gas supply network from Russia makes it most vulnerable should Gazprom halt supplies.

Pricing spats between Russia and neighbouring transit states Ukraine and Belarus have halted exports to Europe in the past. (Reporting by Amie Ferris-Rotman)

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