Growing Shale Production Costs to Influence LNG Price: Gazprom

The rising costs of Shale gas production in the coming years will have a knock-on effect in boosting global LNG prices, Gazprom said as reported by TASS.

• "The US anticipates either an increase [in costs] or a significant drop in volumes of shale gas in long-term forecasts of the shale industry development in the country,” TASS quoted Gazprom as saying.
• "The rise in production costs will drive in particular the price of LNG, where shale gas is used to produce it," Gazprom added.
• Gazprom said that the factors driving the rise in shale gas costs will be inflation, depletion of brownfield and lack of greenfield sites, and little potential for additional technological improvement to boost production efficiency.
• Shale gas is currently produced in China, Argentina, the USA, and Canada.