Russia’s Comeback In The LNG Race

1 Sep 2017   LNG, Russia

In a little more than a month’s time, Russia will formalize its claim for a bigger role in the ever-expanding global LNG market. Early October, when the Yamal LNG will see its commissioning and first cargo delivered, expect to hear “Russia” and “LNG” in the same sentence in increasing frequency. Yet in Yamal LNG, Russia’s bid to consolidate its claim as a gas stronghold and to garner at least 10% of the global LNG market, one can discern a quite unconventional project for Russia. Although led by NOVATEK, a non-state-owned company (albeit with multiple connections to the political establishment) and not the usual “suspect” Gazprom, it stands a good chance to propel Russia into the LNG vanguard. This being said, behind the viability of Yamal LNG stand several factors absent which the project would be commercially feasible only with gas prices strictly above $11-12/MMbtu – most importantly, large-scale government […]

Comments are closed.