Following the consideration by the Board of Directors of the issue of the prospects for the development of the shale gas and liquefied natural gas (LNG) industry in various regions of the world, the opportunities and threats for the company, the press service of Gazprom reported that LNG from the United States cannot be considered as the basis of energy security for large gas-consuming countries and even more so for entire regional markets, such as the European one, Finmarket reports.
The 2020 crisis has led to reduced demand and lower energy prices, including natural gas, the report says. In the shale gas industry, negative consequences primarily affected the United States, accounting for about 95% of its world production. According to analysts' estimates cited by Gazprom, the growth rate of shale gas production in the United States may significantly decrease in the coming years.
“The development of gas production from shale in other countries in the future until 2030 will not have a significant impact on the global gas market and the activities of Gazprom,” the Russian company is confident.
It is noted that the macroeconomic situation harmed the long-term development prospects of the LNG industry. So far, in 2020, only one final investment decision has been made for a new LNG production project. Besides, the anticipated launch dates for several projects have been postponed.
In 2020, due to the low competitiveness of supply from the United States, buyers abandoned the large number of LNG shipments produced in that country. In this regard, the utilization of gas liquefaction capacities in the United States in the summer months was significantly lower than their design capacity.
"The observed decline in activity may in the long term lead to a decrease in the projected volumes of LNG supply in the world market and the formation of an additional niche for Gazprom's gas supplies," the Russian company hopes.
According to current estimates, by 2030, the main increase in LNG imports will come from the countries of the Asia-Pacific region, including China, which will increase purchases and increase imports of Russian pipeline gas.
Earlier it was reported that the United States might cede its leadership in oil refining to China.