MOSCOW (Realist English). Gazprom has announced a strategic decision to focus on liquefied natural gas (LNG) production while ruling out any involvement in shale gas extraction, citing both economic and environmental considerations.
The company’s board of directors confirmed the new direction following its latest meeting, saying that LNG will be a cornerstone of Gazprom’s long-term growth strategy.
According to the board statement, global LNG demand is expected to rise by 70% by 2035, driven primarily by the United States, Qatar, and Russia. The company said expanding LNG and pipeline gas projects would strengthen Russia’s position in the fast-growing Asia-Pacific energy market.
Gazprom already operates major LNG assets, including the Sakhalin-2 project and the Portovaya LNG complex, and plans to build a new plant in Ust-Luga with an annual capacity of 13 million tons. However, the project’s timeline remains uncertain due to Western sanctions and supply chain constraints.
In its statement, Gazprom made clear that it will not pursue shale gas development, arguing that Russia’s vast reserves of conventional natural gas offer a more economically viable and environmentally sustainable path.
The company also noted that global shale gas output stagnated in 2024, with the United States accounting for 94% of total production. The shale sector’s prospects, Gazprom said, appear limited by the lack of new large discoveries.
Gazprom analysts believe U.S. LNG exporters may soon face challenges from resource depletion and rising domestic competition for gas, which could slow the expansion of America’s LNG industry.
By contrast, Gazprom said Russia’s focus on LNG exports and infrastructure development would help secure long-term market share across Asia, particularly in China, India, and Southeast Asia, where demand for natural gas continues to surge.
