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Russia intends to quintuple LNG output to feed Asian demand

Russia intends to quintuple LNG output to feed Asian demand Russia intends to quintuple LNG output to feed Asian demand


Moscow, June 19 - Neftegaz.RU.
Russia aims to increase its liquefied natural gas output about fivefold by 2035 to capture about 20% of the global market. The country envisions up to 70% of its LNG exports by then going to the Asia-Pacific region, through the Arctic Ocean shipping route, Asian Nikkei reported.

Energy Minister Alexander Novak told Nikkei that Russia's government intends to strengthen its cooperation with Japan in terms of funding and technology for the LNG and related sectors.

Japanese PM Shinzo Abe and Vladimir Putin are expected to discuss economic cooperation in areas including energy when they meet in Osaka on June 29 on the sidelines of the G-20 summit. The leaders will also discuss a peace treaty and other matters between the countries. Novak could join Putin's delegation.

Russia's current LNG output is about 28 million tons a year. This combines output from the Sakhalin-2 project, in which Japanese general traders Mitsui and Mitsubishi participate, and the Yamal LNG project in Arctic Russia.

The plan is to raise the total, which now represents around 6% of global demand, to between 120 million tons and 140 tons by 2035, according to Novak. Qatar and Australia each accounted for over 20% of the global LNG market in 2018. Russia's goal is to rival these producers as well as the U.S. in LNG output.

Novak said the Asia-Pacific region is home to some of the world's biggest LNG markets, and that Russia expects to boost exports to Japan, China, India, South Korea and Vietnam.

Russia also exports LNG to Europe but has hastened the introduction of a planned Arctic Ocean shipping route so that 60% to 70% of its exports will go to Asia-Pacific, Novak said.

Russia hopes to attract Japanese technology, loans and investments to its LNG sector, Novak said, adding that Moscow welcomes foreign partners, including Japan.

He also expressed hope that final-stage negotiations between Russia's Novatek and Japanese companies, including Mitsui, regarding investments in the Arctic LNG 2 project will soon come to fruition.