Challenges for Russia in the Global Natural Gas Market

Abstract

The subjects of research are the current state of the global natural gas market, regional aspects of its production and consumption.

The purpose of the work is to assess Russia’s prospects in the gas sector. Forecasts of the long-term development of the global market are presented with an emphasis on the countries of East and South Asia, where, according  to  long-term  forecasts, gas  demand  will  double  to  1,092.6  million  tons  of  oil  equivalent  by 2050. It is established that the advantage of natural gas on the world market is its price due to the decarbonization policy proclaimed by economically developed countries, price volatility and escalation of conflicts in the gas sector. It is expected that by 2050 China will increase gas consumption by almost 350 billion m3 to 661 billion m3, which currently exceeds the volume of gas consumed by the countries of the European Union and the Middle East. It is proved that during the period of economic slowdown caused, among other things, by the coronavirus pandemic, the imbalance of supply and demand in the global hydrocarbon market leads to its destabilization. The article attempts to predict the evolution of energy markets and determine the volume of gas demand in the foreseeable future.

It is concluded that the consumption of natural gas in key regions of the world will only grow, which opens up significant export prospects for the Russian natural gas market.