Shell interested in new LNG projects in Russia close to promising Asian market
Shell, the multinational oil and gas company, is ready to consider its participation in new LNG projects in Russia as the concern sees the growth potential of gas demand in Asia, Country Chair Shell Russia Ekaterina Grushetskaya said in an interview with TASS.
Russia has 19% of the remaining global gas reserves, meanwhile holding only 8% of the world’s production of liquified natural gas (LNG), she said. Shell expects the LNG demand to reach around 700 mln tonnes per year by 2040, which is almost twice as high as in 2020. That said, 75% of that demand will be focused in Asia, in close proximity to the Russian raw material base, Grushetskaya added.
“In this respect we would like to participate in such projects in the Far East since the Asian market obviously needs this energy source,” Shell’s head in Russia said, noting that the company might potentially be interested in other regions of the country, not only the Far East, as well.
Shell currently owns 27.5% in the first Russian LNG project Sakhalin-2, which it manages in a partnership with Gazprom (50% plus one share), as well as Japan’s Mitsui (12.5%) and Mitsubishi (10%).