US likely to export shale gas to Asia — Russia’s ambassador

April 25, 2014

The US is most likely to export its shale gas to Asia instead of Europe, for the prices are more attractive in the former, Russia’s Ambassador to the EU Vladimir Chizhov told the international high-level conference on European energy policy, held in Bruges on April 24, ITAR-TASS reported.

Chizhov stressed that gas prices in Europe were much higher than in the US, but lower than in Asia; he recalled that during President Barack Obama's visit to Brussels in March 2014 the latter said that the US would consider possible new exporters of national gas to the world market.

“However, the rules of a free market economy require that the gas should be exported to those markets where prices are higher. In this case it is Asia. So if Europe wants to compete with Asia for American gas, it will have to offer the US even more attractive prices. This will consequently intensify competition between European and Asian economic policies”, the ambassador explained. He believes that American gas export will be much more beneficial for the Asian economies then for European ones.

Chizhov also added that the EU may only gain some intangible benefits from American gas exports. “If the US offers its shale gas on the world market, it will not decrease the European gas prices, but will surely boost the American ones and make all US-produced goods more expensive. This will help ease the market misbalance and tensions between the US and the EU”, he said.

Therefore, wherever American shale gas arrives, whether it will be Europe or Asia, or even both of them, Russian gas will still have all the possibilities to remain in demand in the EU, Chizhov concluded.

Copyright: ITAR-TASS, 2014