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Main page > Comments > Fuel & Energy > Gazprom heads for Atlantic
Gazprom heads for Atlantic
Gazprom means to increase it presence in the US gas market by 50%. Experts believe that this plan is realistic. Even rumours about the USA’s intention to boost shale gas production cannot get in the way.
The figures look as follows. In the second half of 2010 Gazprom sold about 600 million cubic metres of liquefied natural gas (LNG) to the USA. Gazprom is sure that in the future this amount will exceed 900 million cubic metres. At present this gas monopoly has created all conditions for increased deliveries to the USA. Recall that Gazprom already deals on the US market. Its US branch, Gazprom Marketing and Trading, successfully sells natural gas to the US and is even one of the twenty largest operators. In four years this company is planning to enter the top ten. This plan is feasible, especially because Russia has a very small representation in the US gas market, said Konstantin Simonov, the director of Russia’s National Energy Security Foundation, in his interview for “The Voice of Russia”.
“The Atlantic market is absolutely new for us. We went there with very small volumes and today we are only trying to ctack it. This is why the forecasts that have been made are not unachievable, especially if we do not forget that Russia is only taking its first steps in the US market. I’d like to stress once more that we should not ignore the Atlantic market when talking about LNG deliveries”.
The expert adds that we should likewise not ignore other factors that have a strong impact on the balance of power in the LNG market.
"Egypt remains the second largest LNG supplier to the USA. It is not clear what will happen to that country at this stage. Political risks might grow, if things pan out such that the military organizes an election and it is won by radicals. In that case, American gas consumers do not stand to gain. If the military disbands the radicals the country will plunge into chaos. Either way, deliveries from Egypt will become problematic."
"At the same time the USA has been paying growing attention to shale gas production in recent years. Some analysts even say that quite soon the USA will become a large exporter of this fuel. But even in this case the USA should not cherish vain hopes," Konstantin Simonov believes.
“The shale gas situation is very unstable. It is not surprising that the US Department of Energy has not yet published full information about last year’s shale gas production levels."
Thus, despite some difficulties everything is playing into Gazprom’s hands so far. Experts also point out that expansion into the American market will promote projects for liquefied natural gas production in Russia and this will help with Gazprom’s quest to win 25% of the LNG market.
The Voice of Russia, February 18, 2011
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