Russia will face serious competition in the gas sphere

 

Questions concerning supply of gas and competition in the gas market have been on the agenda in recent weeks. Director of the Center for World Energy Markets Studies of the RAS Institute for Energy Studies Vyacheslav Kulagin spoke about prospects for Russian gas in the world market and its main competitors.

 

 

The expert noted: "In the context of its own production, in the context of the uncertain situation with demand, we predict that demand will stabilize and even reduce in the European Union, but in general in Europe, including Eastern countries and Turkey, it will grow a bit. "

 

"We will face serious competition. At the moment we are in different conditions, a different market which will take anything for any price. The market is ready to take huge volumes, but only if the volumes are competitive in comparison to shale gas which can come from the USA and to new projects of production of LNG," Kulagin said.

 

He emphasized that "in the last three years the world has been almost static. This is explained by the consequences of the economic crisis and factors which are connected with the schedule of water projects. If we look at plans till 2020, serious volumes of LNG will appear on the market. First of all they will appear in the Asian region, as well as in Australia. Australian projects are expensive and serious. The question is whether they are competitive with the prices which are required for the Chinese market. Russia set a difficult bar for other exporters in the sphere. Moreover, there is American LNG, which can come to Europe and Asia. The question is whether we will be competitive. It is a challenge for our gas sphere, which has to control internal expenditure strictly and provide attractiveness of its export.

Questions concerning supply of gas and competition in the gas market have been on the agenda in recent weeks. Director of the Center for World Energy Markets Studies of the RAS Institute for Energy Studies Vyacheslav Kulagin spoke about prospects for Russian gas in the world market and its main competitors. The expert noted: "In the context of its own production, in the context of the uncertain situation with demand, we predict that demand will stabilize and even reduce in the European Union, but in general in Europe, including Eastern countries and Turkey, it will grow a bit. ""We will face serious competition. At the moment we are in different conditions, a different market which will take anything for any price. The market is ready to take huge volumes, but only if the volumes are competitive in comparison to shale gas which can come from the USA and to new projects of production of LNG," Kulagin said.He emphasized that "in the last three years the world has been almost static. This is explained by the consequences of the economic crisis and factors which are connected with the schedule of water projects. If we look at plans till 2020, serious volumes of LNG will appear on the market. First of all they will appear in the Asian region, as well as in Australia. Australian projects are expensive and serious. The question is whether they are competitive with the prices which are required for the Chinese market. Russia set a difficult bar for other exporters in the sphere. Moreover, there is American LNG, which can come to Europe and Asia. The question is whether we will be competitive. It is a challenge for our gas sphere, which has to control internal expenditure strictly and provide attractiveness of its export.