In the EXPOFORUM Convention and Exhibition Centre during the 7th St. Petersburg International Gas Forum, the panel discussion RUSSIAN GAS ON THE GLOBAL MARKET IN VIEW OF MOUNTING COMPETITION was held. The discussion was participated by the representatives of the Russian Gas Society, Union of Oil & Gas Producers of Russia, Gazprom, and Association of the European Businesses, and many more.
The experts have discussed key issues within the sector, from the factors providing impact on the changing demand for natural gas and its price formation to the prospects of the liquefied natural gas (LNG) global market development. They specially focused on the change in LNG demand at the European and Asian markets.
During the discussion, the experts mentioned the Arctic-based projects, namely, the Northern marine passage as one of the perspective export directions. Vyacheslav Kulagin, Head of the Department for the Global and Russian Energy Research at the Energy Research Institution of the Russian Academy of Sciences (IEN RAN) was skeptic about the theory that a gas passage should be constructed from China to the European and North American countries. He recalled the case when an icebreaker with LNG aboard had failed leaving the port before freezing and had stayed on the berth till spring. “The Northern marine passage can’t be an all-the-year-round opportunity, at the least, for the nearest 10 years,” Mr. Kulagin insisted.
During the talk, the members of the discussion agreed that the Asian region is one of the most prospective, but in the future the situation is likely to change due to development of the wind industry that is rapidly progressing in China. “On the one hand, the Chinese market is an opportunity, but on the other hand, it is all the indefiniteness,” Frank Shauff, CEO at Association of European Businesses, expressed the common concerns on the account of the Asian export direction development.
Ending the discussion, all the participants shared their visions regarding the future of the gas export in Russia, and despite all the concerns and risks, most of them appreciated it highly and optimistically. Unexpectedly, the general level appeared to be close to the official forecast for 2035.