KRASNODAR, November 13. /TASS/. Products of the Yamal LNG Plant boasts high competitiveness in the global market and it will be difficult for Europe to substitute it in case of imposing restrictions, head of the investor relations department with Russian gas producer Novatek Alexander Nazarov said at the Russia Calling! VTB Investment Forum in Krasnodar.
European countries will have to solve a different task of searching for alternatives to substitute huge volumes of Russian liquefied natural gas (LNG), Nazarov said.
"The markets will have to determine at first, with what they will substitute us. LNG imports grow every year. Europe is now consuming all the LNG it can. Yamal, according to European statistics data, supplied 17-18% to Europe; it will be extremely difficult to physically substitute this volume," he noted. The geography of global LNG consumption continues expanding, Nazarov stressed, noting the growing demand of such countries as Egypt.
The Novatek spokesman pointed to key competitive advantages of Russian products. "Along with Qatar, we are one of the most low-cost producers of LNG. Our product will be competitive in any market in any development scenario," Nazarov said.
Gas production cost of Novatek is about $0.07 per Mbtu, while US producers not having vertically integrated structures buy gas on the spot market at about $4 per Mbtu. Furthermore, LNG plants in the Arctic region have higher liquefying performance, compared to plants in regions with hot climate.
"We will be able to find new consumers if some consumers decide they can reject. The issue is whether they are physically able to reject and if they can, we will find new consumers without problems," Nazarov added.
The European Union announced phased rejection of Russian LNG purchases as part of the 19th package of sanctions. The first stage of restrictions will be effective in April 2026 and the complete ban is planned for January 1, 2027.
About Forum
In 2025, the Russia Calling! VTB Investment Forum is for the first time held in five Russian cities. St. Petersburg became the first floor of the forum in September, followed by Yekaterinburg, Kazan and Krasnodar. The forum will end with a traditional two-day event in Moscow on December 2-3.
TASS is the information partner of the forum.