Gazprom to Review Shale Gas and LNG Sectors

Laxman Pai
Wednesday, November 21, 2018

Russian energy giant Gazprom revealed that there is still a high level of uncertainty in the long-term forecasts for U.S. shale gas production. It also said that the number of LNG-consuming countries would grow in the long term.

Gazprom's Board of Directors took note of the information about the prospects of the shale gas and liquefied natural gas (LNG) sectors around the world, as well as the opportunities and threats facing the Company.

The oil and gas company focused on the business of extraction, production, transport, and sale of natural gas highlighted that, as in the past, shale gas production was concentrated almost entirely in the United States. However, there is still a high level of uncertainty in the long-term forecasts for U.S. shale gas production.

Among the most important factors that will influence the future dynamics of production are the global prices for energy, the resource potential of shale deposits, and the opportunities for improving development technologies.

It said that although China’s shale gas production is showing positive momentum, its growth rates are substantially lower than planned. In Europe, according to recent estimates, domestic production of shale gas is unlikely to develop on a commercial basis, even in the long term.

For Gazprom, shale gas development is unfeasible in the mid- and long-term perspective, taking into account the Company’s large conventional gas reserves.

In their overview of LNG market trends, the meeting participants noted that the number of LNG-consuming countries would grow in the long term, mostly due to the emergence of new importers in the Asia-Pacific region.

Moreover, experts believe that the leading positions in LNG imports will pass from the group of traditional importers (Japan, Republic of Korea, and Taiwan) to a group that will include China and the countries of southern and southeast Asia.

It was also highlighted at the meeting that, amid a favorable pricing environment in the Asian market as of 2018, U.S. LNG barely reached Europe, losing against Gazprom’s pipeline gas. After the first ten months of the year, there was a more than 100:1 disparity between Russian pipeline gas and U.S. LNG in terms of deliveries to European countries. It was noted that the future of U.S. LNG exports in general was largely dependent on the prospects of shale gas production.

According to experts, Russia has considerable potential to become one of the leaders of the global LNG industry. For instance, Gazprom continues to actively develop its LNG production capacities in addition to pipeline gas supplies for the existing and prospective sales markets.

Categories: LNG Shale Oil & Gas Shale

Related Stories

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

MDL Secures Cable Laying Job in Asia Pacific

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

China Starts Production at Major Oil Field in Bohai Sea

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com