Russia could increase LNG output significantly, Energy Minister says

WNM | Apr 9, 2019 at 12:51 PM

ST. PETERSBURG, April 9 (TASS) - Russia may increase production of liquefied natural gas (LNG) to 100-140 mln tonnes per year by 2035. At the same time, by 2025, Russia plans to increase LNG production to 73 mln tonnes, Energy Minister Alexander Novak said on Tuesday.

“Russia has a window of opportunity to build up Russian liquefied natural gas. Currently, a large number of plants are being designed and put into operation, but demand will grow. According to our estimates, further additional demand will range from 300 to 350 mln tonnes by 2035” Novak said.

“This means that we are aiming to reach such figures as 100-140 mln tonnes of LNG per year in the framework of our strategy until 2035,” the Minister added.

Novatek CEO Leonid Mikhelson said earlier that it is possible for Russia to produce up to 140 mln tonnes of LNG per year by 2035. Speaking at the Energy Ministry’s meeting, he proposed to secure the goal of creating an LNG cluster of appropriate capacity.

“In order to increase the share corresponding to our reserves, it is necessary to increase the portfolio of projects. According to our estimates, the resource base of Yamal and Gydan alone will allow producing 140 mln tonnes of LNG per year. Technologically, we are ready to set such goals. We consider it necessary to consolidate the goal of creating LNG cluster with a capacity up to 140 mln tonnes,” he said.

Energy Minister Alexander Novak earlier talked about less ambitious plans to increase LNG production. According to his estimations, by that time Russia could increase production to 100 mln tonnes.

Novak noted that the Ministry would consider Novatek’s proposal.