Basis for Growth in Demand for Russian Gas is in Exports to Asia

9 october 2015

Prospects of gas use in Russia became a separate topic of discussion at the 5th International Gas Forum, which was held in St. Petersburg on October 6-9. Experts talked about inter-fuel competition, energy efficiency and environmental friendliness.

In the context of a slowdown in the domestic economy and the introduction of sectoral sanctions, the problem of optimization and the efficiency of gas use in the domestic market is becoming more evident.

"The main struggle is with the American LNG, and it is serious enough for Russian gas," said the Head of the IES RAS Center for International Energy Markets Vyacheslav Kulagin. "If we talk about volumes of deliveries, then the maintenance of them at the current level - this is a normal scenario that received a positive evaluation of the Centre," said the expert. Mr. Kulagin called the Asian market "best hope" in terms of LNG because of the demand, but the expert warned that each project must be approached very seriously from the perspectives of the real demand.

The expert of the Institute of Natural Monopolies Alexander Grigoriev drew attention to the uncertainty of the practical implementation of an agreement on a common energy market within the EEU. "The notion of a common gas market means that, in accordance with the signed agreements we will have to implement the commitments to deal with suppliers from Kazakhstan, and it is unclear whether we only have to let them in to our domestic market or also to provide them with infrastructure, so they will drive gas on export," the expert said. Moreover, according to Mr. Grigoriev, perspectives for the gas industry will be affected by nuclear power plants (NPP). It is the NPP sector, which, in the end, can give additional impetus to the development of gas chemistry.

Summing up the results of the round table, the Head of the Department for Strategic Studies in Energy Alexander Kurdin agreed with his colleagues that the basis for growth in demand for Russian gas is export to Asia and if the domestic market and export to Europe are able to affect its dynamics, it will take time. The expert called natural gas motor fuel, gas processing, gas chemistry and overall increased use of gas in the national economy the important directions of development of the gas industry.

The same day the Head of the Department for Fuel and Energy Sector Victoria Gimadi moderated a conference on the subject of associated petroleum gas. Experts talked about his separation into components, transportation and disposal, as well as about use of the latest scientific developments in the field of natural gas processing and gas chemistry.