• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 10 hours The United States produced more crude oil than any nation, at any time.
  • 1 day China deletes leaked stats showing plunging birth rate for 2023
  • 13 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming
From Fantasy to Fact: The EV Slowdown Gets Real

From Fantasy to Fact: The EV Slowdown Gets Real

Despite significant efforts and investments,…

OPEC Demand Forecast Boosts Bullish Sentiment in Oil Markets

OPEC Demand Forecast Boosts Bullish Sentiment in Oil Markets

An optimistic demand forecast from…

Russia to become a Major LNG Producer within a Decade

Leonid Mikhelson, the chief executive and co-owner of Novatek, has predicted that Russia will become one of the top LNG producers in the world within the next ten years, matching even the likes of Qatar, the current top producer.

Reuters claims that over the past decade Novatek has grown from a mid-sized producer into the second largest gas company in Russia behind Gazprom, with a market capitalisation of $40 billion, and producing enough gas to meet the demand of a country the size of Italy.

Mikhelson stated that Novatek expects to increase their natural gas production volume by 7-8 percent this year, and for liquids output to grow by 40-50 percent as new fields come on line.

“In Russia we have LNG projects being developed by us, Gazprom and Rosneft. It would be a mistake to think that all these projects will be competing with each other.

Related article: Sakhalin Energy Reserves Russian Calling Card for Improved Japanese Ties

Given the expansion of LNG markets, Russia could have twice as many projects as it has today and those volumes would still find their customers. On a 10-year horizon, Russia simply must build up to 80 million tonnes of LNG capacity.”

One problem standing in the way of Mikhelson’s prediction is the fact that Russia, despite its wealth of reserves and vast production facilities, has only one LNG export facility on the Pacific Island of Sakhalin. To try and rectify this Novatek are planning a major Arctic LNG project known as Yamal LNG, on the Yamal Peninsula. Other LNG plants are also being discussed by other companies on both the Pacific and Atlantic sides of the country.

Other countries, such as Australia, the US, and East Africa are also predicted to massively increase their LNG export levels over the next decade, leading some experts to predict a glut in the market and subsequent price collapse for the fuel.

ADVERTISEMENT

However Mikhelson stated that he was confident demand would outpace production, avoiding any supply glut. “There is big competition between various types of fuel. In recent years, gas was losing this competition, but I think the share of gas will be rising in the future in global energy balances.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News