RIA Novosti: US Shale Gas Will Head to Asia, Not Europe – Russian EU Envoy
The European market for US shale gas is unlikely to yield big profits as Europeans would have to raise prices to withstand competition from Asia, Russian EU envoy Vladimir Chizhov said Thursday.
Speaking at the College of Europe in Belgium’s Bruges, Chizhov said natural gas prices in Europe are higher than in the United States, but lower than in Asia. Therefore, US shale gas has better prospects on the Asian market, if the US issues new export licenses.
Under market economy rules, shale gas is more likely to be exported to those markets where prices are "more interesting," namely to Asia, Chizhov said.
If Europe wants to compete with Asia for US gas, it will have to offer "much more attractive prices" that would complicate the balance between the competitiveness of the European and Asian economies, he said.