Novak urged to find a resource base for LNG projects

Deputy Prime Minister of Russia Alexander Novak declared on the need to find a resource base for projects for the production of liquefied natural gas (LNG).

“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, with the support of the Ministry of Industry and Trade, will develop a roadmap for the project with a share of domestic technologies of 80% of the industry’s needs, as well as identify the opportunities and risks of domestic LNG production. In particular, Novak instructed to form working groups to assess the level of import independence in the industry.

Now, according to the implemented projects, production is about 33 million tons, but after the construction of plants in Ust-Luga and Arctic LNG 2, Russia will start producing 66 million tons of LNG per year, the Deputy Prime Minister assured.

On March 2, Deputy General Director of the company “Gazprom subsoil (subsidiary of Gazprom) Oksana Bugry reportedthat the company plans to build an LNG plant in the Krasnoyarsk Territory to gasify the region. According to the presentationGazprom subsoil”, the capacity of the plant will be 2 million tons per year. Capital expenditures for gas production and construction of the plant are estimated at 181.6 billion rubles, of which 98.7 billion rubles will be invested in the plant itself. Capital expenditures on infrastructure for gas transportation – another 40.4 billion rubles.