HomeNewsRussia to free up LNG exports, sees output rising to 100 MMtpy, PM says

Russia to free up LNG exports, sees output rising to 100 MMtpy, PM says

3/9/2023

(Reuters)—Russia will be able to raise its liquefied natural gas (LNG) production to 100 million tonnes per year over the next seven years by expanding the list of gas fields permitted to export LNG, Prime Minister Mikhail Mishustin said on Thursday.

Russia has planned to reach a 20% share of the global LNG market by 2035, expanding its annual LNG output to 120 million-140 million tonnes from over 30 million tonnes now.

The country increased its total LNG exports in 2022 by 8.6% to around 33 million tonnes (around 45 billion cubic metres), of which more than half was shipped to Europe, Refinitiv Eikon data showed.

Russia's largest LNG producer Novatek provided the bulk of the supplies, having shipped 20.8 million tonnes from the Yamal LNG project in the Arctic and 700,000 tonnes from Kriogaz-Vysotsk on the Baltic Sea, according to Refinitiv Eikon.

The Gazprom-led Sakhalin-2 project in the Pacific part of Russia increased its LNG supplies by 11% to 11.2 million tonnes in 2022.

Only a limited number of companies, first of all, Novatek and Gazprom, have a government license for sea-borne LNG exports from Russia. Also, gas fields have to be licensed for further LNG exports.

Mishustin told a televised government meeting that the government proposed to add some gas fields, which are located in Krasnoyarsk region in east Siberia and in the Arctic Yamal-Nenets region, to that list.

"The decision made will make it possible to increase annual LNG production to 100 million tonnes in the next seven years, as well as significantly increase exports and generally strengthen Russia's position in the global market for such environmentally friendly fuel." Mishustin said.

(Reporting by Vladimir Soldatkin; Editing by Sharon Singleton)

 

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