• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 22 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 10 hours Starvation, horror in Venezuela
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 17 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 18 hours Saudi Fund Wants to Take Tesla Private?
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 3 hours Corporations Are Buying More Renewables Than Ever
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 10 hours China goes against US natural gas
  • 11 hours Why hydrogen economics does not work

Gazprom Wants 15% of Global LNG Market

Gazprom aims to capture 15% of the global LNG market over the next 15 years. In a press release, it stated that its board of directors agreed that LNG would be one of the company’s “core businesses,” and focusing more on LNG would allow the company to optimize its trading portfolio.  “A gradual increase in LNG output will allow Gazprom to seize a 15 per cent share in the global market by 2030,” the company said in its statement.

Gazprom sold its first LNG cargo in 2005, and since then has sold 148 LNG cargoes to 12 countries. While much of its business is done through pipelines over land, Gazprom sees LNG as an enormous growth opportunity. Gazprom estimates that the global LNG market will grow at a rate of 3% per year. Gazprom controls a majority stake in Russia’s only LNG project – the Sakhalin II facility off Russia’s eastern coast.  It has two LNG trains there, and is exploring the option of adding an additional train to boost production. Gazprom is also aiming to export LNG from a terminal in Vladivostok on its eastern coast, as well as from a facility on the Baltic Sea.

Related Article: Russia Eyes Crimea’s Oil and Gas Reserves

Russia is in good position to serve the large and fast-growing Asian market. Japan is by far the world’s largest importer of LNG, and it continues to need imported energy to replace lost capacity from its shuttered nuclear power plants. Gazprom’s export facilities are located very close to Japan.

The U.S. is moving towards greater LNG exports, and the ongoing crisis in Ukraine has given momentum to export backers. Still, U.S. LNG will need to compete in regional markets where other LNG capacity will be coming online. As Gazprom’s plans point out, Russia too will be vastly expanding its LNG export capacity, and could reach Asian markets at lower cost.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News