Gazprom’s LNG exports in line with 2015, Medvedev says

Gazprom’s LNG exports are expected to reach roughly the same volumes as in 2015, according to the company’s deputy chairman Alexander Medvedev. 

Speaking in an interview with the company’s magazine, Medvedev said that LNG exports could be around 3.56 million tons.

He added that LNG market is becoming an “increasingly competitive environment”, and the company is working on strengthening its relations with partners in Japan, Korea and Taiwan, as well as buyers in the emerging markets of Southeast Asia, the Middle East, and other regions.

Speaking of LNG exports from the United States and Canada, Medvedev said that the target markets for US LNG will be defined by the natural gas prices across regions.

He reminded that most of US LNG volumes have been contracted to portfolio players without destination restrictions, noting that most of the Sabine Pass cargoes ended up in Latin America, the Middle East and Asi-Pacific with only two coming to Europe.

With cargoes landing in Portugal and Spain that are practically cut off from the common European gas transmission system, Medvedev said that the US LNG is no competition to Russian gas in Europe.

He added that Canadian projects have been hit by low oil price environment and could possibly begin construction once the market enters the new investment phase.

European gas consumption has been on the rise as it comes back into the power generation mix. This has also had a positive impact on Russian gas exports that are expected to exceed 170 billion cubic meters, Medvedev said.

LNG World News Staff