HomeMediaLatest NewsWhen will Russia be able to occupy 25% of the LNG market

When will Russia be able to occupy 25% of the LNG market

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to RBC on the long-term prospects for Russian LNG exports.

Alexey Belogoryev notes that Russia has the gas deposits for competitive LNG production in the 2020s and 2030s, but, as rightly noted, it needs its own liquefaction technologies, an extensive fleet of gas tankers and sales markets outside Europe and Northeast Asia.

"We are still quite far from solving all three mentioned tasks," he concludes.

The expert explains that the rapid growth of LNG imports in the Middle East market is unlikely due to sufficient pipeline supplies, "including even such an exotic option as Russian-Iranian swaps”.

"Sub-Saharan Africa remains, but this is still to some extent terra incognita - gas demand there still needs to be created," which In general, it is a common problem for all LNG suppliers targeting the countries of the global South.

"It is not enough to supply gas here, it is necessary to invest technology and capital in the formation of gas consumption infrastructure — from gas power generation to gas distribution networks. In fact, it is necessary to sell long—term energy supply services, and not LNG as an energy resource," Belogoryev says.

The main question now is whether Russian LNG will remain in Europe or fall under the embargo, like coal and oil before that, the analyst argues. The European market still accounts for more than 50% of supplies from the country.
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