The government and NOVATEK will allocate 24.3 billion rubles for LNG equipment

Khadzhimurat Saadulaev, head of the oil and gas equipment development department of the Ministry of Industry and Trade, said that the amount of financing for the “road map” for the creation of domestic equipment for LNG projects will amount to 24.3 billion rubles. Government and NOVATEK (MOEX: NVTK) will sign the agreement on April 5, he specified.

“In total, until 2030, financing in the amount of 24.3 billion rubles is provided,” he specified. RBC Mr. Saadulaev.

The official explained that the road map includes a list of 22 types of critical LNG equipment. Its successful development and implementation, according to Khadzhimurat Saadulaev, will increase the level of import substitution in the segment of large-scale production of liquefied natural gas to 80%. He added that the funds will be sent by both the government and NOVATEK.

Mr. Saadulaev said that the timing and amount of financing will be specified annually, and Gazprom, Rosneft or other companies may also be involved in the work. In addition, he allowed the program to be extended, since “a lot of LNG projects are planned beyond the horizon of 2030.”

In 2023 in Russia produced 32.3 million tons of LNG. The country’s authorities set a goal to produce 100 million tons of LNG annually by 2030 and to take a global market share of 15–20% from the current 8% by 2035. In August 2022 Kommersant wrotethat the Ministry of Industry and Trade asked the government to allocate 35 billion rubles to support the industry, but then received only 300 million rubles.

Read more about the LNG industry in the text of Kommersant. “Liquefaction Surrounded”.

Petr Buzlaev