🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Exclusive-Russia does not rule out LNG exports stagnating in next 4 years

Published 24/04/2024, 15:25
© Reuters. FILE PHOTO: The Nikolay Yevgenov, a ship carrying Russian liquefied natural gas (LNG), is seen next to the terminal of Spanish gas grid operator Enagas ENAG.MC at the port of Barcelona, Spain, June 4, 2022. REUTERS/Nacho Doce/File Photo
NG
-
GAZP
-

By Darya Korsunskaya

LONDON (Reuters) - Russia's liquefied natural gas (LNG) exports could stagnate in the next four years under the two less-rosy of three Economy Ministry scenarios - a sign that Western sanctions might be cramping Moscow's energy plans.

Under the ministry's "conservative" and "stress" scenarios, the latter not made public, LNG output would stagnate at 38.6 million metric tons each year in 2025-2027, according to a document seen by Reuters.

The baseline scenario, the most optimistic, calls for a rise to 56.6 million tons in 2027 from 33.3 million in 2023.

Russia says it wants to secure 20% of the global LNG market by 2030-2035, compared to around 8% at present, thanks to new plants predominantly located in the Arctic.

However, myriad Western sanctions present obstacles, not least to a new Arctic LNG 2 project that is yet to export a cargo after tentatively starting production in December.

The project is due to become one of Russia's largest such plants with eventual annual output of 19.8 million metric tons of LNG and 1.6 million tons of stable gas condensate from three production units, or trains.

Sources have said the conversion of methane into liquid at minus 163 degrees Celsius (minus 261 Fahrenheit) has now been suspended at the plant.

© Reuters. FILE PHOTO: The Nikolay Yevgenov, a ship carrying Russian liquefied natural gas (LNG), is seen next to the terminal of Spanish gas grid operator Enagas ENAG.MC at the port of Barcelona, Spain, June 4, 2022. REUTERS/Nacho Doce/File Photo

The Kremlin-controlled energy giant Gazprom (MCX:GAZP) also delayed the start-up of a huge gas complex at the Baltic port of Ust-Luga since the withdrawal of Western companies such as Linde after the start of Russia's conflict with Ukraine in February 2022.

Russia currently has two large-scale LNG plants: the Novatek-led Yamal LNG, which produced around 20 million tons last year, and Gazprom's Sakhalin-2, with an output of more than 10 million tons last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.