As LNG prices hit historical low, Russian government decides it will not fund new Arctic projects
I have long said that it’s hard to imagine that anyone really makes money on Arctic LNG from Yamal when prices are where they are right now. And as things look thanks to US shale and Qataris expansion plus a raft of new projects LNG prices will remain low for more than a decade. Russia makes no tax revenue from those projects and also chips in subsidies as it looks to me. Understandably, the want to stop the bleeding. I would want that too. Add in that lower temperatures make the passage of ships from Yamal to Asia and Europe even more difficult and that will take full effect when the solar minimum hits us in full force. Yamal LNG looks very much like a stranded investment to me. Build a rail line from there to wherever you want the LNG. It takes more than 3000 block trains of 50 carriages each to transport 10 bcm of gas. That’s almost 10 per day. Steep but not impossible.
thebarentsobserver.com 
