New projects have Gazprom eyeing North American market (6/9/09)
Russia Today
"Gazprom plans to take up to 10% of the North American LNG market by 2020, with the Yamal and Shtokman fields to be the main resource base for shipments to the U.S.
Gazprom sent its first tanker with LNG to the American coast in 2004. In the next ten years the company wants to become a serious LNG suppler with at least 10% of the U.S. market, according to Aleksandr Medvedev Director General of Gazprom’s export arm.
“The volumes we have now is just 0.5% of the gas consumption in the United States. But we believe that together with Shtokman and Yamal LNG, our share in the US and Canada market will grow up between 5 and 10%. In general we are targeting that 70% of the Shtockman volume could reach North America. We offer 9.6 million tones of LNG."
The global recession has recently sent volumes and prices of LNG lower, but Chris Finlayson, Head of Shell Russia, believes that’s temporary.
“Shell’s LNG market has been affected by the weakness of industrial demand, particularly in South Korea and Japan. One should separate a short-term weakness that is undoubtedly there, with future projects and demand from Japan Korea and China."
Shell – Gazprom’s partner in Russia’s first LNG plant on Sakhalin Island – says its possible to increase the plant’s capacity by 5% in the near future and even build a new one. Gazprom is also optimistic over the future of the LNG market, expecting demand to grow by 8% annually.
To boost its share in liquefied natural gas production Gazprom has begun a pre-investment survey on two new LNG projects in the Far East and the Yamal peninsula."
"Gazprom plans to take up to 10% of the North American LNG market by 2020, with the Yamal and Shtokman fields to be the main resource base for shipments to the U.S.
Gazprom sent its first tanker with LNG to the American coast in 2004. In the next ten years the company wants to become a serious LNG suppler with at least 10% of the U.S. market, according to Aleksandr Medvedev Director General of Gazprom’s export arm.
“The volumes we have now is just 0.5% of the gas consumption in the United States. But we believe that together with Shtokman and Yamal LNG, our share in the US and Canada market will grow up between 5 and 10%. In general we are targeting that 70% of the Shtockman volume could reach North America. We offer 9.6 million tones of LNG."
The global recession has recently sent volumes and prices of LNG lower, but Chris Finlayson, Head of Shell Russia, believes that’s temporary.
“Shell’s LNG market has been affected by the weakness of industrial demand, particularly in South Korea and Japan. One should separate a short-term weakness that is undoubtedly there, with future projects and demand from Japan Korea and China."
Shell – Gazprom’s partner in Russia’s first LNG plant on Sakhalin Island – says its possible to increase the plant’s capacity by 5% in the near future and even build a new one. Gazprom is also optimistic over the future of the LNG market, expecting demand to grow by 8% annually.
To boost its share in liquefied natural gas production Gazprom has begun a pre-investment survey on two new LNG projects in the Far East and the Yamal peninsula."
Views: 22
Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on
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Yeah, I ran across it earlier today, Les. Just couldn't stand to post it. Just what we need. More LNG imports.
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Permalink Reply by sesport on -
Les - I was looking at some Shell info not too long ago (but lost it in the reading stack) Am I correct in understanding what I read to indicate that this gas is headed for So. Cal. for our western markets?
Much appreciated - :0)
No, I didn't lose it, here it is.
http://www.shell.com/home/content/media/news_and_library/press_rele...
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Permalink Reply by Les Bamburg on
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Sesport, new LNG imports will begin arriving at the Costa Azul Terminal from Indonesia and Russia later this year and early 2010. There will be little, if any, deliveries of LNG cargos from Russia until the end of 2009 when the new nitrogen injection plant will be in service.
A large portion of the natural gas delivered from the Costa Azul Terminal will be consumed in Baja Mexico with the remainder flowing to Southern California.
Maximum send-out capacity is 1 Bcfd.
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Permalink Reply by sesport on
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Okay, I just saw this and thought uh-oh.
"...to begin shipment of LNG supplies from Sakhalin II to the United States, the world’s largest gas market..."
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Permalink Reply by Les Bamburg on
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Sesport, just keep in mind that Sakhalin LNG is intended primarily for the Japanese market. The near term issue is the economic downturn in Asia that has crimped LNG demand in Japan and Korea. This has resulted in those supplies seeking alternative markets.
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Permalink Reply by sesport on
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I just don't want the US to be the alternative market. (Sorry all you international investors.) Asia is crimped??? What are we? lol I was so looking forward to gas in storage going down. Now, Korea, is that North or South?
Now (can't help myself) I'm off to find some Somali pirates to see if I can't coax them over the the "other" big pond to head off some LNG tankers. :0)
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Permalink Reply by Les Bamburg on
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Sesport, most of the additional LNG cargos that come to the US during the remainder of 2009 will arrive at terminals in the Gulf Coast region. So now we have the remaining offshore production being restored, shale gas production ramping up and LNG cargos arriving. And all of these right in time for gas storage to reached its breaking point. Should make for a real donnybrook in the Southeast US as everyone scrambles for market share and pipeline capacity.
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Permalink Reply by sesport on
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Les - Donnybrook ... hmmm ... been there myself. lol
Breaking point & scrambling ... I can't help but think this won't help those ng prices much. (but that's only what I'm thinking, being no expert).
How many terminals in the gulf area?
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Permalink Reply by Les Bamburg on
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Sesport, by July there are will be four active terminals in the Gulf Coast with 6.6 Bcfd of output capacity.
As for NG prices, between now and end of 2010 will not be a good time to be a seller.
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Permalink Reply by sesport on
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Thanks again, Les. I'm fearing an 80's repeat bust for us, and we're just now getting started. :0( I saw the EIA weekly storage report posted. I dread going to look up the weekly for prices.
grumble, grumble - sesport -
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Permalink Reply by Les Bamburg on
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Sesport, oh yes - South Korea (the good guys) not North.
Yes, you would not believe how badly the Japanese economy has been hit. A couple of months ago Toyota was looking to lease space near the Port of LA to park all those cars they can't give away.
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Permalink Reply by Grillin' - MmmMmm on
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Be careful GD, protectionist trade policy can get real nasty and bite us on the other end. They may not let us dump any of our cheap...can't think of anything we export that's cheap! Certainly not our cars anymore. But putting up trade protection barriers is one of the big reasons the Great Depression turned into the Great Depression. We hit a huge slump, tried to do some things to get out of it, started to move forward and then our beloved gov't raised taxes and increased import duties on foreign goods. Bammm. We slumped even further down and into the Depression. We are already in a slump and we have gov't raising taxes. Don't want to put in the 3rd leg of that stool.
I have a feeling that many in Congress won't be happy with your idea, particularly those in the Northeast. They want dirt cheap gas for heating and generating electricity. The best way to get dirt cheap gas is to have tonnes of LNG dumped on the market. Their hatred of Big Oil/Gas will help them say "to heck with the HS". Heck, with all that LNG, they wouldn't have to allow us to frac wells or drill offshore. This could be a win-win for the Yanks. Of course, we multiply our dependence on foreign sources for nat gas just like we've done for crude oil. Since OPEC has worked out so well for us with crude oil, just think how "great" a natural gas foreign cartel will be!!
This could be a tipping point issue!
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