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 increase.
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
On European energy policies:
Russia is right about trying to diversify supplies to
Asian markets. There is some discomfort about the European
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.