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Russia possesses more than 20% of world gas reserves, it will remain as main exporter for a long time. This year, only in Europe, Gazprom will supply about 200 billion cubic meters. of gas, and in subsequent years volume will increase. The struggle for the European market, as well as others, and the prospects for the development of the energy sector were discussed at the Russian Energy Week 2018, which took place in Moscow from 3 to 6 of October.

First of all, the main energy sources in the world are still coal and oil, gas takes the third place - 23%. But if the total energy growth in the world is about 1% per year, then gas consumption is about 2.5%. And most of all, consumption of liquefied natural gas (LNG) is increasing, especially in the Asia-Pacific region.

Agenda "LNG - New Opportunities for Collaboration and Sustainable Development in the Asia-Pacific Region", photo © Roscongress Foundation

In Russia have always bet on the development of pipeline gas, but recently the LNG industry has also begun to develop. There are fields on Sakhalin, and more recently on Yamal. It was not by chance that the on-site session of the Gas Exporting Countries Forum was held on October 2 in Saetta, on Yamal, where it was possible not only to talk about gas, but also to see the capacities of the Yamal LNG complex.

With high foreign guests (ministers, heads of companies) Leonid Mikhelson, Chairman of the NOVATEK Board, told about the potential of producing liquefied gas in Yamal and on the neighboring Gydan, about the advantages of the Northern Sea Route. The Northern Sea Route makes it possible to transport goods to Southeast Asia 30% faster, and therefore cheaper. In particular, LNG, which is exactly lacks the most.

Mikhelson said that Russia can reach a share of 20% in global LNG production, and for this it has not only a resource base, but also groundwork. For example, an experimental line will be launched at Yamal LNG, entirely Russian-made. The businessman believes that soon Russia will be able not only to supply gas (LNG or pipeline), but also equipment and technology in this industry.

Leonid Mikhelson, Chairman of the NOVATEK Board, photo © Roscongress Foundation

Transferring to Moscow, where the Russian Energy Week 2018 opened the next day, a lot of time was devoted to gas. However, there were so many sections that everything was discussed - the coal industry, oil, power grids, renewable energy sources, and the transportation of the future. It turned out that the USSR was the leader of gas transport, and now, due to its isolation, Armenia has remained a country where a lot of cars run on gas. Although gas is much cheaper than gasoline (almost 4 times, noted Viktor Zubkov, Chairman of the Board of Directors of Gazprom), but a small number of gas stations hinders the process of replacing cars. Gazprom promised to bring the number of gas stations to 500 in 2020, but China can be considered the undisputed leader in this area - there are already 8,400 gas stations, and it is there the greatest growth of cars using gas is expected.

Minister of Energy of the Russian Federation, Alexander Novak said that the European market will increasingly need Russian gas. For objective reasons - own production in Europe is declining, and consumption is growing. For example, Germany, abandoning nuclear power plants, is forced to increase gas consumption.

“We are not monopolists in the European market, and we don’t want to be them. But we are for fair competition, and we are told about “bad gas” (the one that will come from Russia via the Nord Stream-2) and “good gas” (LNG from the USA). But the gas formula is one, and the only criterion is competitiveness and price”, noted Novak. In this case, Russian gas for Europe is the most profitable.

Minister of Energy of the Russian Federation Alexander Novak, photo © Roscongress Foundation

Vladimir Putin, who participated in the plenary session, said that “Russia is open for cooperation in the global energy industry”, and in all its sectors. Thanks to him, the OPEC and non-OPEC countries were able to agree, the oil prices on the world market leveled off and reached $ 60 per bar. Putin said that Russian pipeline gas has no competition in the European market, and LNG from the USA is 30% more expensive than Russian.

Ben van Barden, CEO of Royal Dutch Shell, confirmed that in Europe market LNG from the United States cannot compete with Russian gas. He is a participant in the Nord Stream-2 project, but "if the United States imposes sanctions on the project, we will have to get out of it." What Putin had to answer: "We understand, we will implement the project with our own strength."

Plenary session “Sustainable Energy for a Changing World”, photo © Roscongress Foundation

Gas is becoming an especially important type of fuel because of ecology, it is much cleaner than coal and oil. It perfectly complements renewable energy sources (RES) when they are insufficient and at peak loads. A few years ago, the International Energy Agency published the report “Golden Age of Gas”, it has not come yet, but it is gradually coming.

Evgeny Utkin, Moscow, Russia

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