Oil & Gas

25 Apr 2024

Exclusive: Russia Does Not Rule out LNG Exports Stagnating in Next 4 Years

25 Apr 2024  by reuters   

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 Purchase Licensing Rights
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 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.

The Kremlin-controlled energy giant Gazprom (GAZP.MM), opens new tab 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 (LIN.DE), opens new tab 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.


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