Russia's Novatek ambitious after Yamal LNG success

Subject

Russian LNG development in the Arctic.

Significance

Russia's first Arctic liquified natural gas (LNG) plant, created and run by the Novatek energy company, is up and running and in two years has doubled the country's share of the global market to 8%. Its success means the outlook is good for a second project, in which shares have been taken up by French and Chinese firms while Saudi investment is still under discussion.

Impacts

• According to Shell LNG Outlook 2019, LNG continues to be the fastest-growing global gas supply source.
• In the medium term, rising Qatari, US and Australian production will exert downward pressure on LNG prices.
• Novatek investments in a Murmansk construction yard and transhipment hubs in Murmansk and Kamchatka are helping less developed regions.