National Association
Liquefied Natural Gas

Global demand for natural gas this year will undergo the strongest decline in history. This forecast was made by the International Energy Agency (IEA). The fall will be 4%, or about 150 billion cubic meters, which is one and a half times higher than the consumption of a country like Germany. Demand will decline in all regions of the world without exception, but preliminary evidence shows that this process has affected Europe the most. The main hopes for the restoration of gas demand after the crisis lie, on the contrary, in Asia. However, the IEA believes that the industry will recover from the impact longer than the manufacturers would like.

Last year was not the best for gas workers. Consumption growth was lower than expected (+70 billion cubic meters), and the exceptionally warm winter further weakened demand. Since February, the situation began to deteriorate further. The epidemic and quarantine shocked all markets and gas did not become an exception. Suppliers had to face a double problem. First, quarantine in and of itself led to a decrease in gas consumption. Secondly, the world economy has suffered severe damage, the effect of which will last for many months, and maybe even years.

An overabundance of gas supply in the world market resulting from the commissioning of new LNG capacities in recent years against the backdrop of two warm winters in a row led to a drop in gas prices in spot markets in Asia and Europe

In Europe, this was compounded by high gas reserves at the beginning of the year. As a result, gas spot prices in Europe are now lower than in the US, which makes LNG exports from the US to Europe unprofitable, and the premium on Asian markets does not cover the cost of transporting LNG from the US to the region.

According to the IEA, problems of this nature will continue throughout 2020. More than half of the fall will be in the sphere of electricity generation, the housing and communal complex and industry in this regard will suffer less. At the same time, even in 2021, there is no need to wait for a quick recovery in the sector, most likely the growth will be smooth and gradual. In general, the 2020 crisis will lead to the fact that the average annual growth rate of gas consumption in the world until 2025 will slow down to 1.5% against 1.8% in the previous few years. In total, the market is missing about 75 billion cubic meters.

To restore balance in the global gas market, a significant reduction in production and the abandonment of new LNG projects are required. Moreover, the latter is already happening.

Some large companies are still optimistic about the long-term prospects of natural gas. So, the head of Shell Ben van Berden in an interview with Bloomberg said that natural gas will be the fastest growing type of fuel in terms of consumption. According to him, the annual increase in demand will be 4%. LNG consumption will increase even faster. If at the end of 2019 it amounted to 359 million tons, then in 20 years it will reach 700 million tons. The main hopes here are still laid on Asia, which should provide from half to two-thirds of the total rise.

The volume of global LNG trade in 2025 will reach 585 billion cubic meters, which is 21% more than in 2019. during this period, significant changes are expected in the market: the largest buyer of liquefied natural gas in 2023 will be China, and in 2025 the United States will take the position of the first largest seller of this product, according to a new annual report of the International energy Agency (IEA).

"Emerging markets in Asia, led by China and India, remain the driving force behind the growth of LNG imports, with the US accounting for almost all of the net growth from exports. The growth rate of LNG trade is expected to be slower than the increase in production capacity, which will limit the risk of a shortage in the market in the forecast period, " the report said.

Thus, by 2025, the Asia-Pacific markets will account for 77% of all LNG imports in the world, while in 2019 this figure was 69%. "China alone will account for 22% of all imported LNG in 2025... China will become the # 1 buyer of LNG in 2023, and the US will become the # 1 seller of LNG in 2025," the IEA notes.

Agency experts estimate that by 2025, China's LNG imports will reach 128 billion cubic meters due to an increase in regasification capacity, while in 2023, the country will take the lead in purchasing LNG from Japan. It, in turn, will reduce LNG imports by 10 billion cubic meters by the end of the forecast period due to increased consumption of nuclear energy and renewable energy sources.

As for the United States, the country, according to the IEA forecast, will overtake Qatar in LNG sales in 2023, and Australia in 2025.

EXHIBITION "GAS. OIL. TECHNOLOGIES"

From September 15 to September 18, 2020, the largest industry events will be held in Ufa - Russian
Petrochemical Forum and 28th specialized exhibition “Gas. Oil. Technologies". Powerful
the communication platform will gather the largest companies in Ufa, the best experts from
the number of politicians, scientists, top managers of corporations, businessmen.
The organizers of the forum and exhibition are the Government of the Republic of Bashkortostan,
Ministry of Industry and Energy of the Republic of Bashkortostan, Bashkir Exhibition
company.
Traditional support for the events is provided by the Ministry of Energy of the Russian Federation and
Ministry of Industry and Trade of the Russian Federation. The exhibition is also supported by industry unions and
by associations.
EXHIBITION OF THE EXHIBITION
The leading Russian companies annually participate in one of the largest expositions in the country,
key manufacturers of equipment for the petrochemical, chemical and oil and gas complex.
To visit the exhibition in Ufa, a large number of targeted visitors of the largest
oil and gas, refining and petrochemical enterprises.
BUSINESS PROGRAM
The Russian Petrochemical and Chemical Forum is always becoming an authoritative platform for meeting and
communication of hundreds of industry experts - representatives of state authorities of the federal and
regional levels, science, trade unions, industry and business.
As part of the business program of the 2020 Forum, a plenary meeting is planned,
A visiting meeting of the Working Group of the Ministry of Energy of Russia on the development of oilfield services.
Among the relevant topics are planned:
- introduction of technological innovations in oil refining,
- development of small-scale production and use of LNG in the transport sector of the economy,
- trends and prospects for the development of gas processing,
- metrological support for oil and gas production,
- technological safety of Russia in the field of oil and gas refining and petrochemicals.
Industry forums and exhibitions were supported by:
- Union of Oil and Gas Industrialists of Russia
- Russian Union of Chemists
- Association of Oil Refiners and Petrochemists
- Scientific and Industrial Association of Valves
- Geophysical cluster "Quantum"
- National Association of Liquefied Natural Gas
- National Gas Engine Association.
Preparations for events are going on as planned.
We invite you to participate in the Russian Petrochemical Forum and
International exhibition “Gas. Oil. Technologies"!

https://gntexpo.ru/

According to the results of the first four months of 2020, natural gas production in Russia decreased by 9.4% year-on-year

In January – April 2020, Russia increased LNG production by 11.1% compared to the same period last year, Rosstat said, adding that the volume of LNG produced was 10.9 million tons.

In April alone, LNG production amounted to about 2.6 million tons, an increase of 4.5% in annual terms, but a decrease of 3.9% in monthly terms. In March, according to Rosstat, LNG production in the country amounted to 2.7 million tons.

At the same time, natural gas production in Russia in the first four months of 2020 decreased by 9.4% year-on-year, to 208 billion cubic meters. In April, this figure amounted to about 47 billion cubic meters, which is 16.2% lower than in April 2019 and 7.4% in March 2020.

Sakhalin Energy and NOVATEK previously reported that the coronavirus pandemic did not force Russian LNG producers to cut exports. “Production and shipments are going according to plan,” a Sakhalin Energy spokesman said. “Shipments of products from the Yamal LNG project are carried out as planned in accordance with the concluded agreements, including deliveries to the Asian direction. All parties conscientiously fulfill their obligations, ”Novatek said.

Meanwhile, buyers of US LNG can cancel up to 60% of supplies due to the “coronavirus” decline in consumption, Bloomberg reports, citing traders.

“All US LNG projects may receive requests to cancel a total of 35-45 cargo for loading in July. This is higher than the number of canceled cargo for loading in June, ”the traders surveyed by the agency calculated. The number of deliveries of American LNG from January to April was 60-75 per month.

Dear Colleagues!

The National  Association LNG invites you to participate in the 24th INTERNATIONAL SPECIALIZED EXHIBITION OF THE GAS INDUSTRY AND TECHNOLOGIES FOR THE GAS MANAGEMENT

For more than 20 years, the exhibition has become a major industry event in the Russian gas sector, dedicated to demonstrating achievements in the field of construction, maintenance and reconstruction of the gas pipeline system and gas consumption.

It is at this exhibition venue that the closest and most useful communication takes place between representatives of various areas of the gas business: research and design organizations, manufacturers of gas equipment, construction and operational organizations. These business contacts and collaboration have a positive impact on product variety and quality.

Exhibition area: annually more than 9000 square meters.

Participants: annually about 400 companies demonstrate equipment from more than 20 countries of the world.

Visitors: annually about 10,000 specialists, including top managers of major gas distribution companies, scientists and researchers, chief engineers and technical specialists

The ROS-GAZ-EXPO exhibition passed the voluntary certification procedure and is an event approved by the Russian Union of Exhibitions and Fairs (RUEF), which means a professional assessment of the level of its organization, including all key factors of the exhibition quality: the level of preparation and holding. exhibitions, professionalism and responsibility of the organizer, reliability indicators of the exhibition, audit data, the best opportunities for event marketing, high efficiency of participation.

A large state-owned energy company, Gazprom, will manage the Russian section of the pipeline, which is 3,000 kilometers long. In 2014, an agreement worth $400 billion was signed with the Chinese national oil and gas enterprise. In accordance with the terms of the agreement, 38 billion cubic meters of gas will be supplied annually to China over the next thirty years. The Chinese agreement is the largest agreement in Gazprom's portfolio. But even at the moment to assess its profitability is quite difficult.

According to Vladimir Putin's press Secretary Dmitry Peskov, the project with the opening of the gas pipeline will help to improve the level of development of many Russian regions located along the Route "power of Siberia". These events give grounds to talk about strengthening cooperation between Russia and China, which is happening against the background of the Sino-American trade war and the sanctions imposed by the European Union and the United States against Russia.

Over time, it is planned to extend the Chinese part of the pipeline by 5 thousand kilometers. To date, most of the gas exports from Russia are sent to Europe from the Arctic in transit through Ukraine. But these supplies can be described as unreliable due to constant conflicts of a political nature. Limited trade with European countries after the imposition of sanctions gave impetus to the Kremlin to expand trade activities in the Eastern direction. Beijing, due to the deterioration of international relations with Washington, is also interested in cooperation with Moscow.

Such news regarding economic changes in China affected the value of black gold. The index of business activity in the manufacturing sector rose to 51.8. The price of oil after Friday's collapse began to rise again. The price of February futures rose to $ 61.18 per barrel.

During the discussion, the participants discussed the challenges and opportunities for the production of low-and medium-tonnage liquefied natural gas in Russia, including in the Baltic sea, the Arctic and other regions. Such issues as the role of LNG in increasing flexibility and competition in gas markets, assessment of the impact of the requirements of the Russian legal and regulatory framework on the effectiveness of investment projects, prospects for the export of small and medium - tonnage LNG and the potential of domestic markets, as well as other important topics for the industry were discussed.
The discussion, as in the previous gas dialogues, was based on the principle of Chatham House, which involves the non-disclosure of the specific content of the statements of the participants without their consent, and therefore allows you to create an atmosphere of maximum effective communication during the discussion of fundamentally important industry issues.
From the energy Centre of Moscow school of management SKOLKOVO Director of energy Centre Tatiana Mitrova, head of the scientific working group on small and medium LNG at the Center of energy Alexander Klimentyev, analyst, gas energy Centre Sergey Kapitonov and other experts, and representatives of the energy Ministry, administration of the Chukotka Autonomous district, the National chamber of engineers of the companies "Gazprom" "Arkhangelsk LNG, Gazprom export", "GIPRONIIGAZ-MP", "kriogaz", "NOVATEK", "NOVOKHIM", "Sibir-Energo", "Sitek", The National Association of LNG.
"There are a lot of interesting LNG projects in Russia now, some of them were presented directly by their developers. But so far, there are many barriers to their implementation, primarily regulatory ones, which significantly hamper the implementation of the significant, in our opinion, potential of the small – and medium - tonnage LNG industry in Russia. This situation can and should be changed", – summed up the discussion Director of the energy Center of the Moscow school of management SKOLKOVO Tatiana Mitrova.
Recall that the "Gas dialogue" within the Energy club of the SKOLKOVO business school began its work in 2017. The purpose of this initiative is to ensure regular interaction between companies working in the fuel and energy sector, public authorities and the expert community to discuss the strategic prospects for the development of the Russian gas industry.

https://energy.skolkovo.ru/ru/senec/media/2142-news-senec-25112019/#a!

The BRICS international municipal forum (BRICS IFF) is a platform for discussion of key issues in the field of economy and investment, construction and real estate operations, trade, industry and agriculture. All conditions for productive work, establishment and development of business contacts for further promotion of own ideas that fall under the project goals have been created at the site of the BRICS MMF. In 2019, the Forum was attended by representatives of government agencies, local governments, scientists, experts in the construction of complex architectural objects, representatives of business circles and associations, diplomats from the BRICS five countries.

The national LNG Association presented to the Forum participants the program of gasification of small settlements developed by the national LNG Association, which includes the construction of a Federal network of mini-LNG plants with subsequent delivery of the product by gas carriers to the final consumer.

The meeting was very productive and touched upon an important topic for the development of all regions of the Russian Federation without exception. The national LNG Association invited all BRICS member countries to take part in resolving the identified problems and applying ready-made solutions available to the partners. Members of the Association also took part in round tables devoted to attracting investments to the BRICS member States, as well as in the expert Council on the development of our country's attractiveness for investors.

New ways of cooperation are outlined, it was decided to develop jointly a program for gasification of small settlements through the development of the LNG industry.