Gazprom considers replacing its shale gas production with LNG, commenting that the shale gas production of North America will not have any serious impact on the global gas market configuration, whereas LNG projects show an increased number of final investments decisions.
Specifically, the Gazprom Board of Directors considered the potential development of the shale gas in comparison to the LNG across the world.
Thus, the company noted that the share of the United States in the global shale gas production exceeded 95%, in 2018. Current forecasts predict that the US will continue being the main producer of shale gas for the long term, along with some other countries which are expected to continue with the production.
Moreover, the UK banned the commercial production of gas from shale in the country. This act of prohibition may impact the company’s sales, as Gazprom commented that shale gas production is unfeasible both in the medium and long term, given the significant economic and environmental benefits of natural gas from conventional fields, as well as the volume of its proven reserves.
On the other hand, the final investment decisions on LNG projects seem more fruitful. The company noted that from September 2018 to October 2019 FIDs were made for seven new LNG projects in North America, Russia, and Africa – an all-time record for the industry. Nevertheless, independent estimates predict that market growth rates in the next decade will be similar to those in the current decade.
By 2030, forecasts indicate that Russia will become a leader in the commissioning of new LNG capacities.