MOSCOW, November 22. /TASS/: European countries have destabilized the global LNG market and lowered global energy security, the Russian gas holding Gazprom said on Tuesday.
"The global LNG industry experienced dramatic changes on account of rising demand in Europe, which led to market destabilization and the rise in gas prices. In 2022, a significant European premium relatively to Asian prices was observed for the first time over the long period. Certain suppliers in such conditions breached their commitments under long-term contracts and redirected LNG carriers to Europe, thereby provoking crisis situations in certain countries of the Asia-Pacific Region," Gazprom said.
Record high gas prices across the globe did not result in an increase in final investment decisions on new LNG facilities, the gas holding said. "The volume of LNG projects with final investment decisions made in 2022 corresponds to the average annual figure over the last decade," Gazprom noted. The US failed to promptly scale up shale gas production in the favorable environment of this year, the company added.
"As before, the US accounts for the bulk of shale gas production. The production share in other countries - China, Argentina and Canada - is insignificant at a global scale. The year of 2022 showed that the US failed to promptly ramp up shale gas production even in conditions of the favorable market situation. Furthermore, not a single field with significant shale gas production volumes was put on stream in the country over the last five years. No increase of shale gas production in significant volumes is expected in other countries of the globe in the long term and volumes produced are unable to influence the global gas market," the Russian company added.
Reluctance of buyers, primarily European ones, to enter into long-term contracts further limits implementation of new LNG projects, Gazprom said.
