MOSCOW, Oct. 30 (Xinhua) -- The increase in global demand for liquefied natural gas (LNG) is expected to double due to strong demand from Europe, Russian energy company Novatek CEO Leonid Mikhelson said Thursday.
"The LNG market typically grows by around 2 percent annually. Due to strong demand in Europe, consumption growth of around 4 percent is expected this year. In Europe, the consumption will increase by 20 million tons," Mikhelson said.
He noted that the EU has included a ban on Russian LNG starting in 2027 in its 19th round of sanctions.
"Russia now accounts for over 10 percent of global LNG production. If these volumes are removed from the global gas balance, prices will skyrocket, and the European consumers will end up paying the highest costs," added Mikhelson.
"The United States will boost its LNG exports by around 17 million tonnes this year. But if European demand continues at the same pace, even new U.S. projects may not be enough to meet it," he said.
Mikhelson said global LNG consumption is projected to rise from the current 405 million tonnes to around 720 million tonnes by 2050. Separately, he noted that global natural gas consumption in cubic meters is expected to increase from four trillion cubic meters to at least five trillion by 2050.
He also stressed Arctic reserves would be indispensable for meeting surging global demand.
"Covering the future shortfall of 300 million tonnes in LNG supply is simply impossible without Arctic resources, and most of these reserves are in Russia," he added, noting that "such growth can only be achieved by Qatar, the United States and Russia."
"Demand for hydrocarbons will only keep growing. Today, the question is no longer how to limit gas use, but how to meet this rising demand," he added. ■
