Russia has been humiliated after it was forced to abandon one of the world’s largest gasfields. Gazprom, the state-controlled gas group, has spent the past 20 years trying to develop the giant Shtokman field.
But soaring costs and a glut of cheap shale gas from the United States have scuppered the flagship project in Russia’s sector of the icy Barents Sea, about 300 miles north of Finland. The project was originally slated to cost $15bn when it was announced four years ago but costs are since thought to have doubled.
The field, which was first discovered in 1988, is large enough to supply more than a tenth of Europe’s gas and the decision to put it on hold will be seen as a setback for Vladimir Putin. Russia’s President is actively involved in the country’s energy policy and has taken a close interest in Shtokman, The Times explains.
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