Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Gazprom hopes bulk of U.S. LNG flows to be diverted to China, not Europe

Russian gas giant Gazprom hopes China rather than Europe will take the bulk of U.S. LNG volumes after a trade deal between Washington and Beijing, a company official said.

Elena Burmistrova, head of Gazprom’s exporting arm Gazprom Export, also told an investor meeting in New York on Tuesday that weak gas pricing in Europe may curb liquefied natural gas (LNG) supplies to the region.

Sales in Europe is a key source of income for Kremlin-controlled Gazprom, which faces lower prices and rivalry from other sources of gas, such as LNG, in Europe.

U.S. gas producers are counting on LNG exports to continue their stellar growth in the coming years to absorb record amounts of gas associated with oil produced from shale formations. The trend threatens Gazprom’s dominance in Europe.

U.S. LNG exports jumped 53% in 2018, 68% in 2019 and are expected to rise 30% in 2020.

China has restarted talks with U.S. liquefied natural gas marketers to buy more LNG following the Phase 1 accord between the two countries.

Burmistrova said the arrival of new LNG capacities from the United States was a negative factor for gas prices in Europe.

“However it doesn’t mean that all the volumes would end up in Europe. In particular, the Phase 1 of the trade deal between the U.S. and China enables the purchase of energy resources from the United States by China in the amount of $52 billion in the coming two years,” she said.

She also said Gazprom’s exports to Europe fell in January, year-on-year, due to high level of storage in the region amid the warm winter.

In a presentation, Gazprom said it planned to maintain its gas share in the European market at 35% in the coming year following a decline in its exports to the region by 1.3% to 199 billion cubic metres last year.

Burmistrova added that Gazprom was closely watching developments in China where its biggest importer of the fuel suspended some LNG purchases amid weaker demand and a global glut provoked by the spread of coronavirus. (Reporting by Vladimir Soldatkin; editing by David Evans)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Business Trends: Four challenges to Australia’s rising role in the global LNG market
-David Gross
The past 10 yr have been the decade of natural gas, but the next 10 yr will belong to LNG as countries race to build out their export capacity.
Editorial Comment
-Adrienne Blume
Australia and Middle Eastern countries, which have been net LNG exporters, are now foraying into LNG imports due to supply issues.
Industry Focus: Mixed performance for Africa’s gas markets in 2019 poses questions for next decade
-Shem Oirere
As 2020 begins, Africa’s gas market is left with a mixed bag of achievements that only partly confirms a prediction by the International Gas Union (IGU) in early 2019 that the continent’s natural gas segment is “facing a potential turning point.”
Regional Focus: North American NGL to boom alongside petrochemicals
-Eugene Khartukov
Strong natural gas production and rapidly rising demand from petrochemicals makers have resulted in record-high production of natural gas plant liquids in North America, particularly in the U.S. This growth has been led by ethane.


GasPro 2.0: A Webcast Symposium

View On-Demand

Following on the heels of the highly successful GasPro 2.0 Webcast Symposium in October 2018, the second GasPro Webcast Symposium 2.0 will take place on October 24, 2019.

The 2019 web event will gather experts in the fields of LNG, gas processing, and gas transport/distribution to share their operations expertise, engineering and design solutions, and technology advances and trends with our audience.

Attendees will learn about technology and operational solutions and deployments in a number of areas: plant design and expansion, construction, NGL production, optimization, sulfur removal, marine operations and separation technology.

October 24, 2019 08:30 AM CDT

View On-Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.