Experts say that Russia is struggling to meet its LNG targets
Experts said that due to the international sanctions, Russia's LNG exports will probably not reach 67 million tons by 2030. This is far below its target of 100 million tons.
Russia is focusing on developing LNG that can be transported by sea tankers as its gas exports from pipelines to Europe are down due to the conflict in Ukraine. It has also struggled to increase LNG to China.
The company plans to increase its market share to the fifth position on the global LNG markets by 2030-2035.
Alexei Gromov, from the Institute for Energy and Finance Foundation in Moscow, stated that due to Western sanctions and an embargo on LNG imports from Europe, Russia’s LNG exports are likely to increase to only 59-60 millions tons at this time.
Andrei Klepach is the chief economist of state lender VEB. He said that Russia's exports of LNG are expected to reach no more than 67 millions tons by 2030.
The new Arctic LNG 2 plant in Russia tentatively started producing LNG on the Gydan Peninsula, which extends into the Kara Sea. However, the product has been difficult to sell.
Foreign shareholders were forced to freeze their participation in Arctic LNG 2 and Novatek issued a force majeure warning that it would be unable to honor its contractual obligations.
Gromov is of the opinion that Arctic LNG 2 won't reach its full production capacity, which is just over 20 million tonnes per year, by 2029. He stated that Gazprom’s large LNG project along the Baltic Sea shores will not begin loading until 2029. Other large-scale projects will also be delayed. (Reporting and writing by Oksana Kobieva, Editing and editing by Franklin Paul).
(source: Reuters)
