Industry Trends: Russia and US go head-to-head over EU gas market

E. Gerden, Contributing Writer Lower-cost Russian gas will likely continue to dominate the EU market in the coming years, despite the growth in oil prices, to which Russian gas prices are linked. However, demand for gas in Europe will continue to increase, reaching an estimated 145 Bm3y in 2025 and 185 Bm3y in 2035, which could provide good opportunities for US LNG to find its niche. Gazprom officials believe that the cost of US LNG would need to be reduced by four times its current price, to approximately $1/MMBtu or lower, to be competitive with Russian gas in Europe. Meanwhile, a US bill passed in August 2017 introduced new economic sanctions against Russia and opposed the implementati