Russia’s Gazprom could lose 18 per cent of its revenues as a result of competition from US liquefied natural gas exports, according to a New York-based think-tank.
European consumers can expect to pay 11 per cent less for their gas as a result of the downward pressure on world prices created by rising US LNG exports, hitting revenues of the Russian state-controlled gas group, according to an analysis published on Monday by the Center for Global Energy Policy at Columbia university.
However, while the loss would be significant for Gazprom, the impact on Russia’s total export revenues would be more modest, suggesting that US gas exports are unlikely to be an effective tool in forcing policy change from the Kremlin.
The analysis also finds that Europe is likely to remain a large consumer of Russian gas, so will need to strengthen its energy infrastructure to cope with potential supply disruptions.