Mikhelson: global demand for liquefied natural gas will grow
Leonid Mikhelson, the Chairman of the Management Board, a member of the Board of Directors of NOVATEK, delivered a speech at a panel session focusing on the prospects for development of raw materials and energy markets in modern conditions within the framework of the 16th Verona Eurasian Economic Forum
“The world consumes about 4 trillion cubic metres of gas, of which about 1.2 trillion cubic metres account for cross-country supplies. About 650bn cubic metres are exported through the pipeline today, and about 550bn cubic metres – in the form of LNG. On average, over the past decade, the annual gas market growth makes about 2 percent, and two-thirds of this figure is provided by the LNG growth,” Mr. Mikhelson said.
According to him, due to its environmental characteristics and developed infrastructure, LNG consumption will increase in the medium term, “By 2030, the LNG market volume will reach 750-8,000bn cubic metres. Last year, pipeline supplies to Europe decreased by about 70bn cubic metres – of these, about 60bn cubic metres were replaced by additional LNG supplies. The existing energy deficit is replenished by coal. The European Union has increased coal consumption by more than 2 percent, despite the climate agenda. It is predicted that, by 2030, LNG consumption in Europe will increase by another 30bn cubic metres to make 190bn.”
The Chairman of the Management Board of NOVATEK is confident that the largest growth in LNG consumption will be observed in Asia. “Increasing LNG consumption is the most important task for achieving global climate goals. The 28th LNG receiving terminal has been commissioned in China, and the total capacity will reach 180bn cubic metres. India is also increasing capacity. The growth of LNG consumption in Indonesia and Pakistan is predicted. Global demand will grow, and three resource bases will be able to ensure it: Qatar, Russia, and America,” Mr. Mikhelson said.
