Russia's resource base for future LNG projects more competitive than Qatar's and U.S. - Novatek CEO

RAS AL KHAIMAH. Dec 5 (Interfax) - Russia's resource base for future LNG projects is more competitive than other exporting countries, including Qatar and the United States, Novatek CEO Leonid Mikhelson said.

"The potential of Qatar's profitable reserves is already being fully utilized. They've decided to maximize their LNG projects' production capacities. U.S. shale gas is much more expensive, requiring significantly higher extraction costs. Domestic consumption in the U.S. is also expected to grow," Mikhelson said.

"In this connection, I believe Russia currently offers the most competitive resource base for future LNG projects. Without Russia, the world won't be able to ensure an energy transition while avoiding supply crises. Barriers placed on Russian gas directly harm economic growth and the well-being of people in various regions," he said.

The profitability of existing Russian LNG projects is among the lowest globally, he said. "Our projects are 500 kilometers beyond the Arctic Circle. Low temperatures, according to our estimates, add a 7%-10% boost to planned capacity," he said.

Novatek will continue to develop LNG projects to meet the needs of a growing market, Mikhelson said.