Reuters are reporting that Russia's Gazprom has acknowledged for the first time a threat to its dominant position in the European gas market from an expected influx of LNG gas produced in the US under Donald Trump's administration.
Gazprom had previously dismissed possible rivalry from the LNG exports from the US, stating that the costs of transportation via the Atlantic Ocean make it unfeasible.
Trump has made energy a central part of his agenda, has promised to revive oil and gas drilling and coal mining as president by cutting back on federal regulation.
Analysts have speculated that Gazprom could retain its dominance in Europe as US gas shippers take advantage of shortages in Asia and Latin America to plug those gaps, but Golubev conceded US plans may have an impact.
There is no ban on natural gas exports, but US law requires American companies to obtain authorisation from the Energy Department before being able to ship it overseas, and there are tough permit requirements for building the specialised facilities that make shipping gas possible.
The US exported its first cargo of LNG gas last year. It plans to commission four LNG export terminal in 2017 – 2020. For now, it has one working LNG terminal in Sabine Pass, Louisiana.
The US has increased its natural gas production each year since 2006 thanks to boom in shale gas output.
Read the article online at: https://www.lngindustry.com/liquefaction/17012017/russia-acknowledges-threat-from-us-energy-policy/