Deputy Prime Minister Novak instructed to find a resource base for LNG projects for another 34 million tons per year

Deputy Prime Minister of the Russian Federation Alexander Novak announced the need to find a resource base for projects for the production of liquefied natural gas (LNG) for 34 million tons per year. Such a thesis, Mr. Novak expressed at a government meeting on the development of LNG production in Russia.

“The strategic objective and future for our gas exports is the development of LNG production, which in the medium term should reach at least 100 million tons per year. To date, according to the implemented projects, production is about 33 million tons. Taking into account projects under construction, plants in Ust-Luga and Arctic LNG 2, Russia will produce 66 million tons of LNG per year. It is necessary to additionally find a resource base for projects for another 34 million tons of LNG per year, organize complex interaction between authorities and companies, ensure the localization of large- and medium-sized equipment for the LNG industry, and work out measures to reduce administrative barriers,” the Deputy Prime Minister said.

The Ministry of Energy and the Ministry of Industry and Trade will develop a “road map”. The government emphasizes that the share of domestic technologies in projects should be 80% of the industry’s needs. In addition, the relevant ministries will have to determine the risks of domestic LNG production, taking into account the global market conditions, as well as consolidate the plans of companies to create and purchase equipment and technologies. The key problem of the industry remains the high demand for specialists, believes the rector of St. Petersburg Mining University Vladimir Litvinenko, who also took part in the meeting. According to him, the need of enterprises for personnel significantly exceeds the supply on the labor market.

The meeting was attended by representatives of the Ministry of Industry and Trade, the Ministry of Energy and leading industry companies (Gazprom, NOVATEK, Rosneft, Rosatom), as well as scientists. As a result, the participants were instructed to form working groups in areas, assess the level of import independence, global demand and the situation with personnel.

The development of liquefied gas production over the past few years has become one of the key strategic tasks of the economy in Russia. According to forecast Ministry of Energy, by 2035 the share of LNG trade in the global gas market will grow to 52%, by 2040 – up to 70%. At the same time, the share of countries participating in the market will grow exponentially. According to the latest government plans, by 2035 LNG production should increase to 140 million tons per year.

More about this – in the material “Kommersant” “Russian LNG was prescribed growth”.