American Shale Gas Export May Hit Russian Gas Earnings
Posted: 09/22/2014 03:09:15 Edited: 09/22/2014 03:09:15 Clicks: 1107
Columbia University researches that the earnings of Gazprom, Russian energy giant may reduce by 18% for being faced with the competition of American shale gas export.
According to the analysis published by Global Energy Policy Center of Columbia University, the U.S. raising LNG export will pressure global gas prices. It is said that gas prices paid by European consumers will decrease by 11%, which will strike Gazprom, Russian own-stated gas corporation.
Although American shale gas export will damage the benefits of Gazprom, it still has tiny influence on the whole Russian export earnings. It shows that it is impossible that American shale gas export will force Russia to change its current policies.
Meanwhile, it is also found that Europe will still be the main consumer of Russian gas. For that, Europe needs to enhance its own energy infrastructures construction to sole the potential risks that supply may be cut off.
Global gas prices reducing will also strike gas export plans in other regions, such as development plans in large oilfield in the offshore of Mozambique, Africa.
Shale gas revolution in the U.S. has already promoted its LNG output and urged market expectation. The U.S. may become the main LNG exporter. LNG prices also have competitiveness in global market.
Three LNG programs which are worth several billion dollars and have already been approved by FERC are completed. What’s more, other 13 programs still wait for being approved.
Prosperity of shale gas makes the U.S. not need to import LNG any more and also releases LNG supply from Qatar and other regions to Europe and Asia. It has great significance on global gas market and provides larger chips to European and regional consumers so that they can negotiate again with Gazprom for gas supply orders.
It is predicted that the U.S. will begin to export LNG in 2016. The quantity may exceed 14.5 billion cubic feet per day of gas that Russia exports to EU.
According to the analysis published by Global Energy Policy Center of Columbia University, the U.S. raising LNG export will pressure global gas prices. It is said that gas prices paid by European consumers will decrease by 11%, which will strike Gazprom, Russian own-stated gas corporation.
Although American shale gas export will damage the benefits of Gazprom, it still has tiny influence on the whole Russian export earnings. It shows that it is impossible that American shale gas export will force Russia to change its current policies.
Meanwhile, it is also found that Europe will still be the main consumer of Russian gas. For that, Europe needs to enhance its own energy infrastructures construction to sole the potential risks that supply may be cut off.
Global gas prices reducing will also strike gas export plans in other regions, such as development plans in large oilfield in the offshore of Mozambique, Africa.
Shale gas revolution in the U.S. has already promoted its LNG output and urged market expectation. The U.S. may become the main LNG exporter. LNG prices also have competitiveness in global market.
Three LNG programs which are worth several billion dollars and have already been approved by FERC are completed. What’s more, other 13 programs still wait for being approved.
Prosperity of shale gas makes the U.S. not need to import LNG any more and also releases LNG supply from Qatar and other regions to Europe and Asia. It has great significance on global gas market and provides larger chips to European and regional consumers so that they can negotiate again with Gazprom for gas supply orders.
It is predicted that the U.S. will begin to export LNG in 2016. The quantity may exceed 14.5 billion cubic feet per day of gas that Russia exports to EU.
