Translation. Region: Russian Federation –
Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
Istanbul, October 30 (Xinhua) — It is impossible to exclude Russian liquefied natural gas (LNG) from the global gas balance, said Leonid Mikhelson, Chairman of the Board of the Russian gas company Novatek, speaking at the 18th Verona Eurasian Economic Forum, which is taking place on October 30-31 in Istanbul, Turkey.
"This market is global. The European Union, for example, included in the 19th sanctions package a ban on Russian LNG by 2027. Russia currently accounts for over 10 percent of global LNG production. These volumes will simply go to other markets. Eliminating Russia from the global gas balance is simply impossible," he noted.
According to L. Mikhelson, if Russia is excluded from global LNG production, gas prices will skyrocket, primarily affecting the EU. "There will be an unprecedented price hike. And in that case, the European consumer will pay the most," he said.
The head of Novatek emphasized that American LNG projects will not be able to meet the growing demand in the European region. "In Europe, consumption is expected to grow by around 4% this year. Consumption there will increase by 20 million tons. Incidentally, the US will increase exports less this year—by approximately 17 million tons by the end of the year. Therefore, if the EU continues to increase demand at the same rate, there is no guarantee that even new American projects will be able to meet it," the businessman explained.
L. Mikhelson emphasized that overall global demand for hydrocarbons will only grow. "The world currently consumes just over 4 trillion cubic meters of gas. By 2050, it will be at least 5. And that's a conservative estimate. Therefore, the question of how to limit gas consumption is becoming less and less common today. And increasingly, it's about how to meet demand," he concluded.
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