The largest gas exporters in the world. How natural gas is produced
Currently, global gas production covers a fifth of electricity production resources. And also modern industry consumes more than 30% of the produced minerals.
Geographical location of gas deposits
Surface gas seeps are confined to mountainous areas. The release of fossil fuels to the surface occurs in the form of both small bubbles and huge fountains. On water-soaked soil it is easy to notice such small manifestations. Large emissions create mud volcanoes up to several hundred meters.
Before the industrialization of the world, surface gas outlets were quite sufficient. With the increase in gas consumption, there was a need to look for deposits and drill wells. The largest proven reserves of such a valuable mineral are located throughout the world.
Since gas is a sedimentary mineral, its deposits should be looked for in mountainous areas, at the bottom of seas and oceans, or in places where seas were located in ancient times.
The first place in terms of gas volumes is occupied by the South Pars/North oil and gas field, which is located in the Persian Gulf. South Pars is under the jurisdiction of Iran, and North Pars is under the jurisdiction of Qatar. Surprisingly huge deposits, despite their very close proximity, are separate deposits of different ages. Their total volume is estimated at 28 trillion cubic meters of gas.
Next on the list in terms of reserves is the Urengoy oil and gas condensate field, located in the Yamalo-Nenets Autonomous Okrug of the Russian Federation. The explored reserves of this giant field amounted to 16 trillion cubic meters. Now these deposits are within 10.2 trillion cubic meters.
The third field is Haynesville, located in the USA. Its volume is 7 trillion m3.
Gas production areas in the world
The largest natural fuel reserves are located in several locations:
- Alaska;
- Gulf of Mexico (United States of America);
- Far East of Russia and the region of western Siberia;
- shelves of the Barents and Kara seas;
- continental shelves of Latin America;
- south of Turkmenistan;
- Arabian Peninsula and Iran;
- waters of the North Sea;
- Canadian provinces;
- China.
Leading countries in gas production
About twenty deposits contain the majority of natural resource reserves - about 1,200 billion cubic meters. Several countries produce gas.
Country No. 1
Russian Federation. Blue fuel resources are about 32.6 trillion cubic meters. Russia owns nine of the world's largest gas reserves. The gas industry is the backbone of the Russian economy. More than 60% of reserves are in deposits in Western Siberia, the Volga region, the North Caucasus and the Urals. Gas production – 642.917 billion m3 per year.
Country No. 2
Iran. Gas resources amount to 34 trillion cubic meters, which is almost a fifth of the world's reserves. Gas production (212.796 billion m3 per year) is concentrated in the northern region of the state and on the shelf of the Persian Gulf. International sanctions have negatively impacted the country's gas industry. Their abolition in 2016 makes it possible to again increase gas production volumes, which makes Iran Russia’s closest competitor in natural fuel production.
The map shows a gas field in Iran
State No. 3
Qatar. Fuel resources – 24.5 trillion cubic meters. The country relatively recently joined the leading exporters of blue fuel. Gas production, amounting to 174.057 billion m3 per year, its processing and supply to international markets began in 1995–1997. Liquefied gas is produced only in the city of Ras Laffan. More than 80% of the extracted minerals are exported.
Country No. 4
Turkmenistan. Gas deposit reserves amount to 17.5 trillion cubic meters. Gas production occurs in the country’s only field – Galkynysh. Most of the minerals are supplied to the European market. In 2006, the state was included in the Nabucco project - gas supplies through a pipeline from the Asian region directly to Europe. But due to regular conflicts in each of the proposed participating countries, the implementation of the project was delayed. In 2013, Nabucco was closed without being built. The Trans-Adriatic gas pipeline has become a priority.
State No. 5
USA. Natural gas reserves amount to 9.8 trillion cubic meters. Gas production occurs in four states of the state: Texas, Oklahoma, Wyoming and Colorado - 729,529. Blue fuel is also extracted from the depths of the continental shelf, but its share in the country’s total volumes is small - only 5%. Gas production is carried out by private companies.
The leaders in natural fuel production are:
- ExxonMobil
- Chevron
- Phillips 66
State No. 6
Saudi Arabia. Deposits of blue fuel are estimated at 8,200 billion cubic meters. OPEC leading country. The Saudi Arabian Oil Company (or Saudi Aramco) is the only national gas producer in Saudi Arabia. Gas production occurs in 70 fields - this is 102.380 billion m3 per year. The largest of them is Tukhman, located in the Rub al-Khali desert, whose reserves are estimated at 1 billion m3.
State No. 7
United Arab Emirates. Explored reserves of blue fuel amount to 6,100 billion cubic meters. The main volumes lie in the emirate of Abu Dhabi (5600 billion m3). The world's largest gas reservoir, Khuff, is also installed in Abu Dhabi. The remaining hydrocarbon deposits are distributed in the emirates of Sharjah (283 thousand million m3), Dubai (113 thousand million m3), and Ras Al Khaimah (34 thousand million m3).
Gas production only slightly exceeds the state's own needs. used in the UAE for electricity production and in the oil industry. The demand for blue fuel is constantly growing due to the constant increase in production rates in industry.
The ADGAS plant is involved in the Nizhny Zakum, Bunduk and Um-Shaif oil fields. This company also exports natural gas. To solve problems with gas production, the Dolphin project was created. Dolphin is a network of gas pipelines connecting the UAE and Qatar.
Country No. 8
Venezuela. Reserves amount to 5,600 billion cubic meters of natural gas, which is almost 3% of world reserves. The main volumes are associated gas with oil. Together with foreign companies, it develops offshore gas fields. Participating in these projects:
- Rosneft.
- Gazprom.
- Lukoil (RF).
- CNOOC Ltd (PRC).
- Sonatrach (Algeria).
- Petronas (Malaysia).
Country No. 9
Nigeria. Approximate fuel reserves are 5100 billion m3. The country is a member of OPEC and produces the largest volumes of gas in Africa. The gas industry is the backbone of the country's economy - more than 90% of the foreign exchange earnings of the Nigerian budget. Moreover, despite high incomes, the state is very poor due to corruption, poorly developed infrastructure and a weak economy based only on the gas industry.
Country No. 10
Algeria. Explored mineral deposits amount to 4,500 billion cubic meters. After the 90s In the 20th century, thanks to increased investment, proven reserves doubled. The largest deposit is Hass-Rmel, followed by Gurd-Nus, Nezla, Wend-Numkr. Algerian gas is of high quality, has a minimal amount of impurities and is not associated with oil. Hydrocarbon production at 83,296 per year.
Country No. 11
Norway. Three quarters of Western European deposits are identified in the North Sea. Volumes are expected to be 765 billion cubic meters. And also mineral deposits of about 47,700 billion cubic meters were found at the North Pole. Norwegian companies were among the first to extract gas using floating drilling rigs.
Country No. 12
Canada. Most of the gas produced is exported - 88.29 thousand million m3, and 62.75 thousand million m3 is consumed by the country itself. The largest deposits are recorded in the provinces of British Columbia and Alberta, as well as on the shelf of the eastern part of the continent near Newfoundland. The main foreign consumer of Canadian hydrocarbons is the United States. At the moment, the states are connected by a gas pipeline.
State No. 13
China. China is one of the leaders in gas production. Most of the volume is consumed by the state itself. Only blue fuel is supplied to international markets. Chinese gas deposits are located in the South China Sea - the Yacheng field, the reserve volume is 350 billion cubic meters. On land, the largest deposit is recorded in the Tarim Basin, whose proven reserves amount to 500 billion cubic meters.
Video: The entire chain of natural gas production and treatment
As of September 2008, they were Russia, Canada And Norway, annually supplying the world market with 182.0 billion, 101.9 billion and 86.7 billion cubic meters of this type of energy resource, respectively.
Approximately three quarters of all proven natural gas reserves are located in the territory former USSR And Middle East. Russia and Iran account for 45% of world reserves. Although the world's natural gas reserves are significant, they are located far from the regions of the world where demand for natural gas is growing most rapidly. The development of these deposits requires enormous investments. One of the biggest problems is that gas transportation projects tend to be very capital intensive—pipeline construction can take decades. The International Energy Agency says that to meet the world's natural gas needs in 2030, investment of $3.1 trillion will be required between 2001 and 2030, or $105 billion annually.
These are special ships on which gas is transported in a liquefied state under certain thermobaric conditions. Thus, to transport gas using this method, it is necessary to extend a gas pipeline to the seashore, build a liquefying gas plant on the shore, a port for tankers, and the tankers themselves. This type of transport is considered economically feasible when the liquefied gas consumer is more than 3,000 km away.
In the field of network gas, suppliers are strictly tied to consumers through pipelines. And supply prices are determined by long-term contracts. Approximately the same relations have developed today in the LNG sector. About 90% of LNG is also sold on the basis of long-term contracts.
LNG suppliers benefit from shipping savings. Under favorable conditions, the price of gas delivery by tanker can be almost an order of magnitude lower than the price of delivery via a gas pipeline. A comparison of transport costs using LNG and LNG carriers shows that costs increase at a much lower rate as transport distances increase, confirming the attractiveness of the new liquefied natural gas market. In contrast, the construction of both onshore and underwater pipelines increases the cost of traditional natural gas much faster as distances increase.
Meanwhile, the republics also intend to send part of the exported gas to Europe Central Asia- Turkmenistan, Kazakhstan and Uzbekistan. Turkmenistan plans to increase the total volume of “blue fuel” supplied to foreign markets from 50 billion to 100 billion cubic meters by 2010, and to 140 billion cubic meters by 2020 (Kazakhstan and Uzbekistan plan to increase exports to 25 billion and 20 billion cubic meters respectively).
In April 2008, at a meeting of the EU Troika and Central Asian states held in the capital of Turkmenistan, the formation of a new Caspian-Black Sea energy corridor from Central Asia to the EU borders was announced.
Following this meeting, EU officials stated that Turkmenistan had reserved 10 billion cubic meters of gas for Europe since 2009.
Main gas resource Azerbaijan- the largest Shah Deniz field, located in the Azerbaijani sector of the Caspian Sea. In 2008, it is planned to supply a total of 3 billion cubic meters of gas from Shah Deniz. From 2009, when the peak of gas production begins within the framework of Stage 1 of the Shah Deniz development, Georgia will be supplied with 0.8 billion cubic meters, Turkey - 6.6 billion cubic meters.
Currently, the Baku-Tbilisi-Erzurum gas pipeline is designed for a throughput capacity of 9 billion cubic meters of gas per year. BP-Azerbaijan and the State Oil Company of Azerbaijan are considering opportunities to increase the pipeline capacity to 16-20 billion cubic meters per year.
In Asia, most gas is delivered to consumers in liquefied form (suitable for transportation by sea). The largest consumers of liquefied gas are Japan and South Korea.
The largest producers and exporters of liquefied gas are Qatar, UAE, Algeria, Indonesia, Malaysia, Trinidad and Tobago.
The average cost of 1 thousand cubic meters of gas from some of its suppliers is:
Russia has 200-500 dollars;
Norway has $700;
Turkmenistan and Uzbekistan have $340;
Azerbaijan has 300 dollars.
Iran, United Arab Emirates, Russia, Algeria, Venezuela, Nigeria, Saudi Arabia, Qatar, Iraq and Turkmenistan. What do this group of countries have in common? The answer is simple: huge proven reserves of minerals, the revenues from which generously fill the national budgets of these states, “blue gold” - natural gas.
World gas empires. Countries with significant natural gas reserves (EIA\FranchExpert © 2012):
No. 1. Russian Federation .
In the post-Soviet space, Russia (Urengoy field) and Turkmenistan have huge reserves of natural gas, and they also have significant natural gas fields of their own: Azerbaijan, Uzbekistan and Kazakhstan (Karachaganak field).
Russia's share in the global gas production market is more than 18% (1st place), its share of the world's proven natural gas reserves is 25% (of which 95% is in the Arctic). In terms of oil reserves, Russia's position is more modest: 5.3% of world oil reserves (8th place on the planet, of which 60% are in the Arctic) .
The Urengoy natural gas field is the 3rd largest in the world (total geological reserves - 16 trillion m³ of natural gas).
Location: Yamalo-Nenets Autonomous Okrug, Tyumen Region of the Russian Federation.
Production is carried out by Gazprom Dobycha Urengoy LLC (a 100% subsidiary of Gazprom OJSC).
No. 2. Islamic Republic of Iran .
Islamic Republic of Iran :
More than 16% of the world's natural gas reserves. The main fields are located on the shelf of the Persian Gulf and in the northeast of the country;
It is planned to build the Iran-Pakistan-India gas pipeline by the end of 2014. Projects suspended in 2012 (under pressure from the United States and its allies in Europe): gas supplies through Ukraine to the EU, extension of the existing gas pipeline (gas supplies to Armenia and Azerbaijan) through Turkey to Greece;
more than 10% of the world's proven oil reserves. 2nd place in oil production among OPEC countries. The largest oil supplier to China;
Iran is Asia's largest economy. In terms of GDP volume it is second only to China, Japan, India, Turkey, Indonesia and South Korea;
There are restrictions on human rights, primarily related to religion. For example, in the government system there is a special body - the Council of Guardians of the Constitution, which prohibits non-Muslims from holding senior government positions, and members of parliament from drafting bills that contradict Sharia;
According to the Iranian Constitution (Article 13), in addition to Islam, only 3 religions are recognized: Christianity, Judaism and Zoroastrianism. Iran ranks second in the world (after China) in the number of executions for serious crimes.
No. 3. Qatar .
Qatar - the pearl of the Persian Gulf :
3rd place in the world in natural gas reserves, 6th largest exporter of natural gas in the world;
major exporter of oil and petroleum products (OPEC member);
country number 1 in the world in terms of “average per capita income” \ richest state in the world;
form of government - absolute monarchy;
Qatari satellite television - Al Jazeera - is the leading media outlet in the Middle East.
No. 4. Saudi Arabia .
More than 25% of proven oil reserves (more than 260 billion barrels), 4th place in natural gas reserves on Earth;
leader of OPEC. The main regulator of world oil prices;
active defender and lobbyist for the interests of Islam around the world. “The Land of Two Mosques” (the two main holy cities of the Islamic world, Mecca and Medina);
absolute theocratic monarchy, welfare state;
is among the top 10 countries in the world in terms of funding for the armed forces;
a key US ally in the Middle East and, at the same time, the homeland of the former leader of the terrorist organization Al-Qaeda, Osama bin Laden. Diplomatic relations between Saudi Arabia and the Vatican were established only in 2007;
The law prohibits oral or written discussions of the existing political system, the use and trade of alcohol and drugs. criminal law is based on Sharia; for theft - cutting off the hand, for extramarital sexual relations the punishment is lashing, for murder, blasphemy and “witchcraft” (predicting the future, fortune telling) - the death penalty.
No. 5. Turkmenistan .
Turkmenistan is the 5th country in the world in terms of natural gas reserves (according to some estimates - 4th). Has the 2nd largest gas field in the world .
Briefly about Turkmenistan:
Huge reserves of natural gas (15-20 trillion cubic meters) and oil (1.5-2.0 billion tons) have turned Turkmenistan into an important exporter of fuel resources. Main buyers: Ukraine, Poland, Hungary;
The power of the current President of Turkmenistan, Gurbanguly Berdimuhamedov, is absolute. Turkmenistan maintains one of the most repressive and authoritarian regimes in the world. © Human Rights Watch;
According to the Press Freedom Index, Turkmenistan is annually at the bottom of the list. © Reporters Without Borders
No. 6. United Arab Emirates .
6th place in the world in terms of proven gas reserves (about 4% of world reserves \ proven natural gas reserves - more than 214 trillion cubic feet). The main places for natural gas production are the emirate of Abu Dhabi: Abu al-Bukhush, Bab, Bu Hasa, Umm Shaif, Zakum. The Abu Dhabi National Company controls more than 90% of the country's gas reserves;
5th place in reliable oil reserves in the Middle East (No. 1 - Saudi Arabia, No. 2 - Iran, No. 3 - Iraq, No. 4 - Kuwait, No. 5 - Qatar, No. 6 - Oman);
8 - 10% (according to various estimates) of world oil reserves (66 billion barrels, most of it in the emirate of Abu Dhabi). The UAE is a member of OPEC and at the current level of oil production, the UAE's oil reserves will last for more than 100 years! ABU Dhabi National Company (ADNOC) controls the country's oil industry. Main oil fields: Abu Dhabi Emirate (Asab, Bab, Bu Hasa, Al-Zakum), Dubai Emirate (Fallah, Fateh, Margham, Rashid), Sharjah Emirate (Mubarak - near Abu Musa Island);
the leading economic center of the Middle East and the richest state on the planet. GDP per capita since the 70s. 20th century increased more than 20 times! Main trading partners: Japan, Great Britain, Italy, Germany, South Korea. Fish consumption is one of the highest in the world - 140 kg/year per capita;
The UAE is part of the group of non-aligned countries and takes a position of “absolute neutrality” (maintaining “equidistance” from the West and the East).
No. 7. Nigeria .
Nigeria :
1st place in Africa in terms of proven natural gas reserves (more than 5 trillion cubic meters), 7th place in the world in terms of export volumes;
1st place in Africa in terms of oil exports (before the collapse of the state in 2011, Libya occupied 1st place), 2nd place in Africa in proven oil reserves (after Libya);
Nigeria is one of the main suppliers of oil to Western Europe and an important exporter of crude oil to the United States, Brazil and India. Member of OPEC;
in terms of population - 7th place in the world and No. 1 in Africa: more than 162 million people;
in 2nd place in the world in terms of the number of feature films produced (lower in number than India, but ahead of the USA).
2012 © "EIA" Energy Information Administration. Reference to the source for a reprint of materials required
Natural gas production by countries of the world (source - free encyclopedia "Wikipedia" 2006-2011, including using CIA (USA) estimates published in The World Factbook):
Over the past 20 years, the share of natural gas in the global energy balance has increased from 19% to 24%. According to the forecasts of a number of experts, it will continue to gradually increase to 26–28% by 2020 and 30% by 2050.
However, it must be taken into account that the scale and structure of energy resource consumption in the global economy undergo significant changes over time under the influence of supply and demand.
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Demand creates supply
Among the factors of demand for natural gas, the determining ones are the pace of development of the world economy and its energy-intensive industries - electric power, chemical industry, metallurgical industry and some others. Demand is also influenced by the consumption of the service sector, the public sector and households, and in these segments of the economy there is a multidirectional impact of many factors. On the one hand, new energy-saving technologies and products appearing on the market reduce the demand for natural gas, and on the other hand, an increase in the energy availability of the service sector, the public sector and households leads to its growth.
Structural shifts in energy consumption towards an increase in the share of natural gas are also associated with changes in the supply of energy resources. Along with traditional energy sources (oil, gas, coal), in recent years a wide range of non-traditional types of energy such as coal bed methane, associated oil and shale gases have appeared on the market.
In 2010, gas consumption in North America and Europe came very close to the record levels of previous years. Of course, in many cases, cold weather helped gas producers, but the main reason for growth is still the economic recovery and the demand for gas as a fuel in the short and long term. The Asian market is leading the recovery in gas consumption after the financial crisis.
The main consumers of gas are the industrialized countries of Europe, America and Asia: approximately 70% comes from these regions. Forecasts show that the greatest growth in gas consumption is expected in the Asia-Pacific and Middle East markets - 3-4% per year. In contrast, market growth in North America and Europe is forecast to be the smallest at approximately 0.4-0.8% per year.
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For Russia, gas is the main fuel: its share in primary energy consumption is 55.2%, which is very high by world standards: in any case, among developed countries, no one else has such a high share of gas in the fuel balance, including those not deprived of gas powers such as the UK (where the share of gas is 40%), the Netherlands (38%), Canada (27%), the USA (26%) and Norway (only 9%, due to the dominance of hydropower).
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However, against the backdrop of countries such as Iran, where gas also provides 55% of all primary energy, or Algeria, where its share is 60%, Russia looks quite organic. And if you compare it with the UAE, Qatar, Turkmenistan, Azerbaijan, Uzbekistan or Belarus, then it is generally impossible to say that everything in Russia is heated with gas.
Nevertheless, gas consumption in Russia is gigantic. Suffice it to say that it is equal to the consumption of Germany, France, Italy, Japan, China and India combined. Russia annually burns and processes 420 billion cubic meters of gas, second only to the United States in this indicator.
Exporters and importers
The natural gas market essentially consists of two markets: the pipeline gas market and the liquefied natural gas (LNG) market. The main gas exporters are five regions, and the main gas importers are six to seven countries.
The main and largest exporter of pipeline gas is currently Russia, which provides more than 36% of world exports. Five countries (Canada, the Netherlands, Norway, Russia and Algeria) supply more than 94% of natural gas to the world market. On the other hand, five other countries (USA, Belgium, France, Germany and Italy) import about 72% of the gas supplied to the world market.
In the LNG market, the main exporters are Qatar, Algeria, Indonesia and Malaysia, Australia and Russia, providing 71% of global exports. At the same time, only two countries - Japan and South Korea - import 71% of LNG supplied to the market. In general, 75% of the global LNG market is the market of Asia-Pacific countries. First of all, it should be noted that, unlike the oil market, which can rightfully be called global, gas markets have a fairly clear regional character. We can speak with confidence about the American, European and Asian international markets, about the domestic market of Russia and the CIS countries.
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Dynamics of world gas prices
World natural gas prices vary depending on regional characteristics and circumstances, but the generally accepted gas price that is used as a reference in financial contracts is the price that is used on the New York Mercantile Exchange (NYMEX). Its official name is Henry Hub Natural Gas. The price for this contract is based on supplies from the Henry Hub gas storage facility in Louisiana.
It is also worth noting that a single global natural gas market as such has not yet been formed. The main obstacles to the creation of a global gas system are related to the long distances of gas supplies and the high share of transport infrastructure in the economic indicators of natural gas. Thus, in the cost of natural gas supplied to Western Europe from Norway, the share of trunk and distribution networks accounts for up to 70% of all costs. With comparable transportation capacities, the transport part of the cost of gas, due to its lower flow density, turns out to be almost twice as high as that of oil. Because of this feature, the price in different regions is not the same.
Global natural gas prices are rising due to increasing demand from Japan after an earthquake in the country led to the suspension of 11 nuclear reactors.
In Britain, gas contracts for the supply of gas rose by 7.4% to 74 pence per therm. There has not been such a sharp jump since November 2008. In New York, April gas contracts rose in price by 3.8% to $4.037. per million Btu.
After the earthquake and tsunami in Japan, demand for energy increased, which led to an increase in spot gas prices. Japan is the world's largest consumer of LNG. The country accounted for almost 35% of total gas imports in 2009.
Russia sells gas almost exclusively under long-term contracts (for a period of up to 30 years or more, with strictly defined volumes). And for quite a long time there was no alternative to this mechanism - at least in Europe. However, Europe is now purchasing increasingly large volumes on the spot market (a market with immediate delivery of goods and virtually no volume restrictions).
Trading through the spot market does not allow the producer to plan production volumes and profit margins. This situation is especially dangerous today, when gas producers have begun to develop Eastern Siberia and the ocean shelves. The cost of production is rising, and before investing in new deposits, the producer must be sure that he will be guaranteed sales for certain volumes over time.
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It is clear that the spot market, unlike the market for long-term contracts, cannot provide such guarantees. The consequence of this is a reduction in work in hard-to-reach gas-bearing areas. Infatuation with the spot market could harm Europe's energy security. On the other hand, consumers can also be understood. Last year, prices under long-term contracts were 100-200 US dollars higher than spot prices. There is another factor in the growing interest of consumers in the spot market - the development of the liquefied gas market and the reduction of overhead costs in its production. Under these conditions, Russian gas suppliers will have to recognize the competitive LNG market as a marker for gas prices. Soon, 15% of Russian gas will be supplied at prices linked to the spot market. Gas market forecast When discussing the prospects for gas in the global energy balance, it can be noted that gas is currently regaining its position and will remain there for several decades. There will be a transition from the oil balance to the gas balance. At the same time, almost all experts note that the gas market will undergo very serious changes in the near future. Liquefied and shale gases will play a major role. Analyzing the patent applications filed recently, we can come to the following conclusion: “If patents turn into technologies in 15 years, then the consumption of traditional energy will increase by 9%, alternative energy by 12%, and liquefied natural gas (LNG) by 30%” (2008 was taken as the starting point). Large-scale investments made during a period of high gas prices made it possible to bring additional volumes of LNG to the world market: supply growth in 2009 was 16%. According to BP forecasts, LNG production could almost double by 2020, reaching 476 billion cubic meters. CERA (Cambridge Energy Research Associates) estimates that the share of LNG in the European market could grow from 11% in 2008 to 36% by 2035. The entry of shale gas into the global balance will have a serious impact on Russian gas companies. Projects for the construction of gas liquefaction facilities in Yamal and the Shtokman field provide for the supply of up to 80% of liquefied gas to the United States. But now the forecasts for gas imports to America have undergone a significant correction; gas from Yamal and Shtokman may not be in demand, or its price will be lower than the forecast values. It should be noted that a number of experts doubt that shale gas will play such a significant role in global hydrocarbon markets. In particular, the formation of shale gas deposits requires a rare combination of natural conditions. This means that there may not be so many of these deposits in the world. And those that exist are “short-lived.” Already in the first year, the production volume at the well drops by 70%, and after 10-12 years the well will cease to operate. Shale gas will not be on the market in significant quantities for long. This means that the liquefied gas industry in Russia needs to be developed. Growing global demand for natural gas By 2035, gas demand will amount to 5.132 trillion cubic meters. versus 3.1 trillion cubic meters for 2008. More than 80% of this growth will come from countries outside the Organization for Economic Cooperation and Development. By 2035, the demand for natural gas will be equal to that of the European Union. Demand comparable to Chinese demand will appear in the Middle East. According to IEA estimates, Russia will become the largest producer of natural gas by 2035 (881 billion cubic meters compared to 662 billion cubic meters in 2010). Gas consumption in the Russian Federation will amount to 528 billion cubic meters. by 2035 (453 billion in 2010). In 2035, more than 90% of gas in Russia will be produced from traditional sources. Globally, about 40% of demand by 2035 will be met by gas supplies from unconventional sources, the IEA believes. At the same time, it is now time for Russian gas to change. Thus, gross gas production in Russia fell by 12.4% last year, including Gazprom reducing production by 16%. This has not been seen in Russia for a quarter of a century. The crisis contraction of demand on world markets, in European markets in particular, does not explain everything, because in the United States gas production grew last year. The main reason is fundamental changes in global gas markets. In recent years, it has become clear that the stability of gas supplies and prices based on long-term contracts does not allow the energy sector to effectively adapt to changes in the global economy, and the gas business is too dependent on geopolitical issues. The most important and until recently still more separate than connected to each other, the US and EU markets began to noticeably change their configuration, and the interdependence between them began to increase. New gas products are entering the market and transport routes are changing. Gas transportation patterns are also changing rapidly. Supplies via gas pipelines are being replaced by LNG tanker shipments. If previously the main geopolitical problems of the gas complex were disagreements with transit countries on the prices of transit and pipeline gas sold for domestic consumption of these countries, now, when spot LNG supplies can influence contract prices and the terms of the contract themselves, geopolitical relationships have acquired a more complex dimension . That is, the old market - the seller's market - is a thing of the past. For the first time in decades, European gas imports fell, and gas purchases from pipelines decreased. Gazprom's gas supplies to the EU in the first quarter of 2010 decreased by 39%. The share of the Russian concern in the EU market fell by 4-5%, which is explained by the energy saving policy pursued by the EU, as well as the emergence of new sources of natural gas on the world market. Where will the “swing” swing? The “consumer-producer” swing in natural gas trade has now shifted towards the consumer; the producer’s task is to adequately respond to the new conditions of the gas market, fully engage in it and restore the export energy potential of our country. To do this, it is necessary, first of all, to recognize that self-regulation operates even in this seemingly naturally monopolistic market. Finally, changes in global gas markets require a fundamental revision of Russia's energy policy. After all, the possibilities for extensive development and mechanical distribution of structures and traditional technologies of the fuel and energy complex to all new deposits and areas of consumption are decreasing. There needs to be an emphasis on mastering new technologies, requiring more active partnerships with Western companies. And gas itself is turning from a monopoly product into a global market product, and therefore investment policy should become an instrument of cooperation with neighboring countries and consumer countries. A serious change in the balance of supply and demand will inevitably affect prices. An example of this is the United States, where since the beginning of active shale gas production, its price has tripled, falling almost to its own cost - from approximately $212 per thousand cubic meters to $70. “The sharp increase in gas production has already led to a collapse in prices to historical lows, making the development of many fields economically unattractive,” Tatyana Mitrova, head of the “World Energy” department at the Energy Center of the Skolkovo Business School, told DW. Today, the shale business in the United States is mainly carried out by small independent companies. The fall in average gas prices and the difficulty of production often affect the profitability of their business. However, many companies continue to drill. “Total shale gas production in the United States is growing, which means there is economic sense in this,” notes Tatyana Mitrova. Mike Wood, responding to a question from DW, added that "not all companies in the US are able to maintain profitability, but this is a natural Darwinian process." The market, he said, is still in flux, but prices are likely to remain low. For Europe, naturally, it did not go unnoticed that gas prices in the United States are almost six times lower than the price it pays under long-term contracts to Gazprom (at the end of the year, the average price will reach $415 per thousand cubic meters). Hence the active search for opportunities to diversify imports, and pressure on the Russian monopolist - both through the courts and through regulatory bodies, such as, for example, the Antimonopoly Committee of the European Commission. Gazprom is still looking at the shale race with condescending detachment. At the beginning of this year, the company’s deputy chairman of the board, Alexander Medvedev, said: “In Russia, we are putting shale gas production on the back burner and, perhaps, in 50-70 years we will return to it again.” According to him, Gazprom's traditional reserves are ten times more effective than the development of shale gas reserves. Meanwhile, by refusing to participate in shale projects, the company risks simultaneously losing its existing sales market. The actual failure of the Shtokman project was a serious wake-up call. “The first result of the “shale revolution” for Russia is the transition of North America from an energy-deficient to an energy-rich state,” explains Skolkovo expert Tatyana Mitrova. “Accordingly, the need for projects focused on supplying LNG to the American market has disappeared, and Shtokman is the most striking example of this.” According to her, shale gas will inevitably lead to increased competition in export markets. |
15.09.2014
The role of gas in modern society is difficult to overestimate. The volume of natural gas in the global energy balance is 25%, and according to forecasts by 2050 it will grow to 30%.
In this brief overview of the current state of the gas industry, we want to outline only numbers and facts, without trying to give our own analysis, and thus we want to interest the public and give them the opportunity to make their own analysis and conclusions.
Table 2. Distribution of proven gas reserves by country,%
Note: in Russia - 47.6 trillion m3, Iran - 26.6, Qatar -25.8, Saudi Arabia - 6.7, UAE - 6.0, USA - 5.4, Nigeria - 5.0, Algeria - 4.6, Venezuela – 4.3.
Traditional natural gas reserves in the world amount to about 174 trillion m3. The main gas reserves in Russia are concentrated in the area of the Yamal Peninsula and amount to 16 trillion m3.
Prospective and forecast reserves add another 22 trillion m3. Gas reserves in the Siberian and Far Eastern districts have yet to be developed, although Sakhalin gas has been supplied to Japan for several years.
Gas production
Currently, gas production in the world is 3.3 trillion m3 per year. Gas production in EU countries remains at the same level, and even a slight decline is planned.
Iran increased production, Qatar moved from 14th place in production to sixth. China and India moved up the ranking. Gas production in the United States has grown due to gas produced from shale rocks (“shale gas”).
Gas production in Russia is carried out by several companies (in billion m3):
- OJSC Gazprom - 510,
- OJSC NOVATEK - 25,
- OJSC "LUKOIL" - 14,
- OJSC "Surgutneftegas" - 12,
- NK "Rosneft" - 12.
Gas export
The main gas exporting countries are:
- Russia (150 billion m3),
- Norway (98),
- Canada (92),
- Qatar (68),
- Algeria (52),
- Netherlands (46),
- Indonesia (36).
The main gas exporter in the world is Russia. The amount of gas exported includes gas transported through pipeline systems and in the form of LNG.
Table 4. Dynamics of Russian gas supplies to Europe
In total, more than 3.5 trillion m3 of natural gas has been supplied to European countries since 1973; 70% of gas supplies from Russia go to Western European countries, 30% to Central European countries.
Table 5. Natural gas supplies in 2011:
| to Western European countries (billion m3) | |
| Germany | 34,02 |
| Türkiye | 26,0 |
| Italy | 17,08 |
| France | 9,53 |
| Great Britain | 8,16 |
| Austria | 5,43 |
| Netherlands | 4,37 |
| Finland | 4,19 |
| Greece | 2,90 |
| Switzerland | 0,31 |
| Denmark | 0,04 |
| to the countries of Central and Eastern Europe (billion m3) | |
| Poland | 10,25 |
| Czech | 7,59 |
| Hungary | 6,26 |
| Slovakia | 5,89 |
| Romania | 2,82 |
| Bulgaria | 2,81 |
| Serbia | 1,39 |
| Bosnia and Herzegovina | 0,28 |
| Macedonia | 0,13 |
| to the countries of the former Soviet Union (billion m3) | |
| Ukraine | 35,5 |
| Belarus | 21,8 |
| Kazakhstan | 3,4 |
| Lithuania | 0,7 |
| Armenia | 1,4 |
| Latvia | 0,7 |
| Estonia | 0,4 |
| Georgia | 0,2 |
Gas import
There are 67 natural gas importing countries in the world; Macau closes the list with 154 million m3. The number of importers includes the United States - the demand for gas in the United States exceeds its own production. Russia imports gas for further transportation through its networks, although gas reserves and exports should not force the import of gas, but it is beneficial for Russia.
Table 6. Gas importing countries (billion m3)
Gas consumption
The consumption of energy resources, including gas, characterizes the economic development of the country.
In short-term fluctuations, the reasons for an increase (decrease) in gas consumption may be warming or cooling of the climate, crises, and force majeure. But in the long term, gas consumption will increase.
For Russia, gas is the main fuel; its share in primary energy consumption is 55.2%.
Table 7. Largest natural gas consuming countries, billion m3
| A country | 2009 | Share in world consumption in 2009, % |
| USA | 646,6 | 22,0 |
| Russia | 389,7 | 13,3 |
| Iran | 131,7 | 4,5 |
| Canada | 94,7 | 3,2 |
| Japan | 87,4 | 3,0 |
| China | 88,7 | 3,0 |
| Great Britain | 86,5 | 2,9 |
| Germany | 78,0 | 2,7 |
| Saudi Arabia | 77,5 | 2,6 |
| Italy | 71,6 | 2,4 |
| Mexico | 69,6 | 2,4 |
| UAE | 59,1 | 2,0 |
| Uzbekistan | 48,7 | 1,7 |
| Ukraine | 47,0 | 1,6 |
| Argentina | 43,1 | 1,5 |
| France | 42, 6 | 1,4 |
Gas transportation
Today we know three ways to transport gas: overland pipeline systems, underwater gas pipelines and transportation of liquefied natural gas (LNG), mainly by sea.
There is no point in talking about the world's pipeline systems (main gas pipelines) - this is an immense topic. Obviously, no one knows the total extent of this system.
Therefore, we will talk about the gas transportation system of Russia, especially since gas flows from this system to most European countries. The length of the Russian system is 160 thousand km. We will also briefly touch on LNG transport.
The main gas suppliers in Russia are currently the largest fields (Yamburg, Urengoy, Medvezhye) concentrated in the Nadym-Pur-Tazovsky region in the north of western Siberia and providing 92% of all gas production in Russia. The Bovanenkovskoye field in Yamal began producing gas in October 2012.
The Yamal-Europe transnational gas pipeline passes through the territory of four countries; its design capacity is 32 billion m3 per year; length more than 2 thousand km.
The Ukrainian gas transport corridor includes the Urengoy-Pomary-Uzhgorod gas pipeline. In Slovakia, the gas pipeline is divided. Along one branch, gas goes to Austria and further to the north of Europe. The second branch of gas goes to southern Europe. Gas transit volume is 30.5 billion m3 per year.
The Nord Stream pipeline directly connects Russia and Germany along the seabed. Its length is about 1200 km, with a throughput capacity of 55 billion m3 per year.
The Blue Stream gas pipeline is intended for direct gas supplies to Turkey through the Black Sea. The length of the gas pipeline is 1213 km, the design capacity is 16 billion m3 per year.
The South Stream gas pipeline project is designed to increase gas exports to Europe. The offshore section of the gas pipeline is approximately 900 km. Design capacity is 63 billion m3 per year.
Of the gas pipelines built recently, it should be noted: Bovanenkovskoye field (Yamal) - Ukhta. Sakhalin-Khabarovsk - Vladivostok (36 billion m3 per year). Gas pipelines Yakutia-Khabarovsk-Vladivostok (25 billion m3 per year) and others are being designed.
In order to ensure uninterrupted gas supplies during periods of increased demand, underground gas storage systems (UGS) are being developed. The capacity of UGSFs in Europe, owned by Russia, is about 3.0 billion m3, daily productivity is 35.7 million m3 (it is projected to increase the capacity of UGSFs by 2015 to 5.0 billion m3).
Part 2 of the article “State of the gas industry in the world”:
Liquefied natural gas (LNG) and unconventional gases
Article prepared by:
Shenyavsky Yuri Lvovich,
President of the Gas Club of St. Petersburg