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World will return to coal if gas prices remain high — Novatek

An increase in investments and commissioning of new LNG facilities can be the only method of stabilizing the situation with high gas prices

BAKU, October 27. /TASS/. The global market will return to coal energy if gas prices remain high, CEO of the Russian gas producer Novatek Leonid Mikhelson said at the 15th Verona Eurasian Economic Forum in Baku.

"Further to projects in Qatar, two more decisions have been recently made in the US. As regards capacities, it is about 23 mln tonnes [of LNG]. However, producers do not rush to make further decisions. GDP cannot simply grow at such extreme prices. If the situation with prices is not mended, the demand will also start contracting - the world will be returning to coal," Mikhelson said.

An increase in investments and commissioning of new LNG facilities can be the only method of stabilizing the situation with high gas prices, the top manager said. International cooperation in the LNG sector is required to do so, which will enable launching new projects, he added.