Russia's Putin to give greenlight to LNG exports to Asia, Novatek and Rosneft to benefit most

By bne IntelliNews June 23, 2013

Russia is ready to liberalise its exports of Liquefied Natural Gas (LNG) in order to profit from the fast-expanding Pacific Asia market, the Russian president Vladimir Putin said at the St Petersburg Economic Forum. Limitations on LNG exports will be gradually lifted, he added. Currently, the state-controlled Gazprom holds a monopoly on gas exports from Russia. Lifting  the monopoly at least for the LNG supplies to Asia was anticipated this year.

Last month, deputy PM Arcady Dvorkovich, who curates the Fuel and Energy sector in the government, said that the necessary legislative amendments for liberalising exports of LNG could be passed already this year. Most of Russia’s natural gas is exported through pipelines, with the only LNG plant operated by Gazprom in Sakhalin.

Russia’s second largest gas producer Novatek is developing the Yamal LNG plant based on the South-Tambey gas field of the Yamanl peninsula, planned to be finished in 2017, with expected capacity of 16.5mn tonnes of LNG annually. Novatek holds 80% and French Total 20% in Yamal LNG plant. It was announced by the company that China National Petroleum Corporation (CNPC) is going to get a 20% stake in the project. Novatek has also reached preliminary agreements on long-term supplies of gas to China.

Russia’s largest oil company Rosneft is also seeking to benefit from the LNG exports. Recently, the company has been actively building up its natural gas resource base. It has announced ambitious long-term plans on the domestic gas supply market as well as the acquisition of the domestic gas producer Itera. At the St Petersburg Economic Forum, Rosneft announced plans to build an LNG plant together with ExxonMobil in Russia’s Far East region by 2018. Moreover, non-binding LNG supply deals were signed with Japanese Marubeni Corp and Vitol trader.

In the meantime, the country’s largest natural gas producer Gazprom is also developing LNG projects. The company announced its plans to build gas liquefaction plant on the Baltic Sea. The output from the plant is to be exported to Europe and Latin America. It also considers joint LNG projects with British Petroleum.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

CEZ set to place Czech nuclear assets in new unit

Czech state-controlled energy group CEZ is set to place all nuclear-related activities into a new division, local media reported on May 17. The move raises speculation that the company is ... more

TAP suspends work on Albania pipeline after uncovering ancient settlement

Trans Adriatic Pipeline (TAP) AG company, which is in charge of the construction of the TAP gas project, has temporarily suspended works on the pipeline near the Turan village in Korca in the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss