Gazprom´s board of directors reviews prospects of shale gas and LNG industry

St. Petersburg, November 20 - Neftegaz.RU. The Gazprom Board of Directors took note of the information about the growth prospects of the shale gas and liquefied natural gas (LNG) industry across the world, as well as opportunities and threats facing the company.

It was highlighted that the share of the U.S. in the global shale gas production exceeded 95 % in 2018. According to current forecasts, this country will remain the main producer of shale gas for the long term.

It is expected that shale gas production outside North America will not have a significant impact on the global gas market configuration and future export activities of Gazprom even by 2030.

It was noted at the meeting that earthquakes in the UK – the only country in Europe that, until recently, had been making attempts to launch development of shale gas on an industrial scale – led to a number of statutory bans precluding commercial production of gas from shale in the country.

For Gazprom, 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.

An overview of LNG trends showed an increased number of final investment decisions (FIDs) on LNG projects. From September 2018 to October 2019, FIDs were made for 7 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.