Western sanctions have limited Russia’s LNG production plans. The new goals count on reaching 110 to 130 million tons per year by 2036.
Russia has pushed back its ambitious liquefied natural gas (LNG) production target by several years. This was stated this week by Russian Deputy Prime Minister Alexander Novak, saying that the original plans in the energy industry were limited by Western sanctions. Reuters reported about it.
- Russia has postponed the LNG production target by several years.
- The original plan affected the impact of sanctions for the conflict in Ukraine.
- The expected annual production of LNG will reach 90-130 million tons.
- Last year, LNG production increased by 5.4% to 34.7 million tons.
- Total oil production remains at the level of the previous year.
“The plan to produce 100 million tons of LNG per year is being postponed for several years,” Novak told Russian state television Rossiya 24. Russia’s goal was to capture about a fifth of the LNG market between 2030 and 2035. Currently, this commodity accounts for roughly 8% of the world market. However, this plan has been affected in recent years by Western sanctions for the attack on Ukraine, which also affected its Arctic LNG 2 terminal.
The latest government strategy, which points to Russia’s long-term plans in the energy sector, foresees LNG production in the country at the level of 90 million to 105 million tons per year by 2030. By 2036, production should then increase to 110 million to 130 million tons per year.
Sanctions moved the plan
“Our goal was to reach 100 million tons. It’s clear that due to sanctions-related restrictions, that goal is being pushed back by several years,” Novak said. However, he did not disclose further details.
Last year, LNG production in Russia increased by 5.4% to 34.7 million tons. Growth was thus weaker than expected as Russia planned to increase production to 35.2 million tonnes.
In addition, Novak added that the total production of oil and condensate in Russia this year is roughly at the level of 2024. That is about 516 million tons, which is 10.32 million barrels per day (1 barrel = 159 liters). These data represent an improvement on the forecast presented by Russian President Vladimir Putin in October, according to which the production of oil and gas condensate will fall by 1%.
