Over $102bn in capital expenditure will be spent over the lifetime of the top ten upcoming onshore gas projects to produce 125 trillion cubic feet of natural gas, according to research and consulting firm GlobalData. These 10 projects, selected from 111 upcoming onshore projects globally, will contribute incremental capacity of 14 billion cubic feet per day (bcfd) to global supply in 2025. All ten largest upcoming global gas projects are located in Russia. Kharasaveiskoye is the largest with anticipated peak production at 4.5bcfd in 2026 at an estimated cost of $17.8bn.
GlobalData reports the average development breakeven gas price for top upcoming onshore gas projects at $1.6 per thousand cubic feet. The company notes that three of the top ten global onshore projects do not meet the return threshold 10% for internal rate of return, indicating the need for better price markets. Kharasaveiskoye has the highest net present value per barrel of oil equivalent at $8.3.
GlobalData estimates $31bn will be spent on the top ten as projects by 2025, with total lifetime capital investments exceeding $102bn. Kovyktinskoye leads capital investment with $19.3bn over its development lifetime, followed by Kharasaveiskoye and Kruzenshternskoye with $17.8bn and $16.7bn respectively. GlobalData expects full-cycle capital expenditure per barrel of oil equivalent to average $4.3 for top onshore gas projects.
Top Ten Upcoming Onshore Gas Projects
| Source: Upstream Analytics © GlobalData |
