Analytical Center for RF Government says Arctic LNG projects to bring no profit if oil prices are below $60 per barrel

Arctic LNG projects will not be economically viable if oil prices are below $60 per barrel, IAA PortNews journalist cites Aleksandr Kudrin, Head of the Directorate for Strategic Studies in Energy of the  Analytical Center for the Government of the Russian Federation, as saying at the International Conference Arctic-2016 in Moscow.

He says supplies of LNG from Russia to Europe will be breakeven if gas costs $250-$300 per 1,000 cbm which corresponds to oil price of some $60 per barrel.

The analyst also says that gas prices in Asia are lower today than they were in Europe when the decision was made on investments into Arctic projects. In this context he believes that the state is not likely to get the expected return from implementation of Arctic LNG projects supported both directly and via different privileges.