The Russian government has adopted a long-term programme to develop the LNG sector, envisioning a massive (triple, some sources say) increase in production over the next fifteen years.
The document includes ‘various’ measures designed to increase Russian competitiveness in the LNG sector, for example, by equalizing the conditions for state support given to LNG projects implemented in different climate zones, or by ensuring regular surveillance of large-scale facilities in the construction phase. New incentives for exploration in the Arctic will also be provided to stimulate the discovery of deposits.
“The programme is based on an integrated approach and aims to diversify the sources of gas supply and, above all, to utilize the resources of the Arctic shelf and the Far East. Liquefied gas production capacity should triple within 15 years,” – Russian Prime Minister Mikhail Mishustin declared. “Attractive conditions will be created for investors executing projects in this area, as well as in related industries” – he added. This is mainly about stimulating “a wider use of domestic technologies in the gas industry”.
According to Rosstat, in the whole of last year, Russians produced a total of 30.5 million tonnes of LNG (+3.5% year-on-year).
In the context of increasing LNG production, it is a good idea to remember the words spoken by Pavel Sorokin, Deputy Minister for Energy, in August. He stated that increasing Russia’s production potential to 120-140 million tonnes per year will require investments of $80-110 billion.
“LNG demand is expected to grow to 580 million tonnes by 2030, and the share of LNG in global gas trade will increase from 35% in 2017 to 52% in 2035.” – Deputy Prime Minister Alexander Novak said in turn. “By 2024, the total capacity of our projects will exceed 68 million tonnes per year. In the long term, Russia’s share in the global LNG market may reach 25%,” – he added.
By Annie Cook (photo: government.ru)