Gazprom to Continue Shale Gas Market Investigation

Gazprom has announced that the core structural units of Gazprom Group continue investigating the progress with shale gas production.

In a statement, Gazprom said it Board of Directors took notice of the results of a survey on the shale gas sector development throughout the globe.

However, the Company stated that "the participants of the meeting agreed that at the moment shale gas production in Russia would be inexpedient due to the abundance of conventional gas reserves with their recovery cost being considerably lower than the estimated cost of shale gas production, as well as due to the considerable environmental risks."

Russia's largest gas producer took note of the shale gas production boom in the United States, where Gazprom said costs associated with shale production meant it was  "unprofitable for most gas producers."

Gazprom Management Committee was tasked to continue the investigation of the shale gas sector development throughout the globe and to report the results to the Board of Directors in the fourth quarter of 2013.

Source: Gazprom