Novatek CEO sees growth in global gas markets to absorb all Russian LNG
The OAO Novatek-led Yamal LNG project will benefit from accelerating growth in demand for LNG in world markets, which can absorb all new production from Russia, according to CEO Leonid Mikhelson.
By ANNA SHIRYAEVSKAYA and LYUBOV PRONINA
The OAO Novatek-led Yamal LNG project
will benefit from
accelerating growth in demand for liquefied natural gas on
world markets, which can absorb all new production from
Russia, according to CEO Leonid Mikhelson.
He spoke at Davos, Switzerland, where he attended the World
On the LNG market:
We are optimistic about the LNG market development. LNG
demand is increasing faster than the gas market in general. A
competition between fuels is under way. In the past few
years, gas has been losing this competition, but I think in
the future the share of gas in the total energy balance will
On competition with Gazprom, Rosneft LNG projects
Its deeply misleading that all these projects
will compete against each other. Given the growth of the LNG
s in Russia could be
multiplied by two, and those volumes will be in demand.
Within the next 10 years Russia simply must build as much as
80 million tons a year of LNG capacity.
Russia is right about trying to diversify supplies to
Asian markets. There is some discomfort about the Europe
an Unions energy policy
. A recent sharp increase in
coal generation in Europe shows that the EU doesnt have
a strategy for energy market development. Gazprom
re-orienting flows and investments will lead to Europe
losing out a lot, which in
fact has already happened with crude oil.