Gazprom to advance LNG, sees no prospects in shale gas
Russia’s Gazprom noted that shale gas production outside of North America will not have a significant impact on the global gas market configuration and future export activities of Gazprom even by 2030.
The company noted that the share of the United States in the global shale gas production exceeded 95 percent, in 2018. According to current forecasts, this country will remain the main producer of shale gas for the long term, with just a few other countries expected to continue with the production.
In Europe, following recent earthquakes, the United Kingdom authorities have issued a number of bans that lead to abandoning the commercial production of gas from shale in the country.
The company added that for it shale gas production is unfeasible both in the medium and long term, given the significant economic and environmental benefits of natural gas from conventional fields, as well as the volume of its proven reserves.
Looking at the LNG market, Gazprom noted that there was an increased number of final investment decisions (FIDs) on LNG projects.
From September 2018 to October 2019, FIDs were made for seven new LNG projects in North America, Russia, and Africa – an all-time record for the industry. Nevertheless, independent estimates predict that market growth rates in the next decade will be similar to those in the current decade.
By 2030, Russia is expected to become a leader in the commissioning of new LNG capacities. The greatest contribution to global LNG imports growth – 60 percent – will be made by the Asia-Pacific region.
The company is looking to further develop its LNG segment.