Russia Wants to Triple LNG Exports by Opening More of its Natural Gas Fields

SEATTLE (Oil Monster): Russia aims to nearly triple LNG exports to 100 million metric tons/year (mmty) by 2030 by expanding the list of natural gas fields allowed to export the super-chilled fuel, Prime Minister Mikhail Mishustin said in a televised government meeting earlier this month.

Draft amendments aimed at achieving that goal would “legally free up reserves for liquefied natural gas export and make clear to Asian importers, particularly Chinese, that volumes small or large are available,” said Jonathan Stern, a senior research fellow at the Oxford Institute for Energy Studies. 

Russia is considering allowing state-controlled operators with gas reserves in the northern areas of the Krasnoyarsk Territory in east Siberia and the Arctic Yamal-Nenets Autonomous Area to ship the super-chilled fuel to delivery points in Asia.

The draft amendments would modify Russian gas laws to allow companies to export LNG without Gazprom PJSC, which largely has a monopoly on the trade. PAO Novatek already has an exemption to export LNG on its own. 

Not only would LNG exports help monetize the stranded gas, but Russia is looking to diversify its gas customers as Europe continues to move away from Russian supplies since the war in Ukraine broke out. 

“The Russians need to maximize opportunities to sell to Asia,” Stern told NGI. “With the European pipeline market largely closed off, some European governments are not accepting Russian LNG and the European Union (EU) is now trying to persuade all member states and companies to ban it.” 

EU energy commissioner Kadri Simson recently encouraged all member states and all companies to stop buying Russian LNG, and “not to sign any new gas contracts with Russia once the existing contracts have expired.”

Russian LNG exports to the EU last year reached a record high of nearly 17 million tons (Mt), according to Kpler. Despite the steep decline in Russian pipeline deliveries to the continent, Kpler data also shows that Russia was Europe’s third largest LNG supplier, behind Qatar and the United States.  

Courtesy: www.naturalgasintel.com