Novatek CEO: Russia will account for 15% of global LNG exports

Russian LNG can be competitive on any market and its share can reach 15% of global LNG export, as reported by the Chair of Novatek Leonid Mikhelson.

“Russian gas will be marketable on the global arena. To my mind, it will account for at least 15% of global export market [of this product],” Mikhelson said.

Novatek CEO suggests that low world’s LNG prices will remain for long. According to him, the preceding price as of 14-16 USD per MBTU has twice dropped, now totalling 6-8 USD.

He said that the present-day goal of all market players is to be competitive at low prices.

Mikhelson also noted that cost of LNG production is now 3.5-fold lower than LNG price.

He also thinks that Gydan and Yamal gas sources will allow Russia producing over 100 mtpa of LNG.

“Yamal and Gydan peninsulas account for about 9 tn cbm of gas, offering the potential of 100 mtpa of LNG”.

For the record, the major shareholders of Novatek are Leonid Mikhelson, Gennadiy Timchenko, and Total holding 18,64% of shares.

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