The cancellation of the Shtokman LNG project by Gazprom was bad (if not totally unexpected) news for Gazprom. The company will now be even more dependent on selling pipeline gas into northern Europe. That will put pressure on prices and could squeeze out other suppliers in areas where Russia has particular political leverage – such as Germany. The more important consequence though is that the decision will force a reappraisal of several other LNG projects around the world which have been relying on ever rising gas prices. Read more
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