MOSCOW, October 23. /TASS/. Russia can redirect its liquefied natural gas (LNG) supplies to Asia-Pacific countries, including China and India, after the EU included phased ban on Russian LNG imports into its 19th package of sanctions, Finam analyst Sergey Kaufman told TASS.
"The market of the Asia-Pacific region may become the main alternative export destination for Novatek. China, India, and smaller consumers in Southeast Asia," the analyst said.
The number of LNG carriers may grow at the same time because of the longer shipping distance, which will create certain difficulties for re-orientation of supplies, Kaufman said.
As for Europe, the accelerated rejection of Russian LNG will keep gas prices in the region within $350 - 400 per thousand cubic meters, the expert said. However, Russian exports of LNG to the EU (about 15-17 mln metric tons per year) is not significant, compared to the expected growth of global production, and Europe therefore will hardly have serious difficulties when looking for alternative sources of import.
"Since 2025, the global LNG market entered at least five-year cycle of production growth, in the first instance on account of the rise in exports from the US and Qatar. LNG production may grow by about 50% over the period of 2024-2030 even under forecasts that are not the most aggressive," the analyst added.