Russia is poised to emerge as a dominant player in the liquefied natural gas (LNG) market, potentially outpacing Qatar, the current leading LNG exporter globally, in the midterm, according to Alexey Fadeyev, a prominent economist and Professor at the Higher School of Production Management at Peter the Great St. Petersburg Polytechnic University. Presently producing approximately 33 million tons of LNG annually, Russia has set ambitious goals to double its output, with a strategic objective of reaching at least 100 million tons per year. The total potential of Russian LNG production, factoring in promising projects, is estimated to exceed 200 million tons yearly.
LNG production holds significant importance in Russia’s oil and gas sector, gaining prominence amid reduced supplies of Russian pipeline gas to the European Union. Despite facing sanctions, Russia boasts over 70 LNG projects, including small-scale operations, that continue to operate and expand. The sector’s resilience is exemplified by the ongoing progress of the Arctic LNG-2 project, led by Novatek, facing sanctions in late 2023. While foreign shareholders temporarily halted their participation, the project is expected to proceed with potential adjustments in LNG sales layouts and potential delays.
Fadeyev emphasized the critical role LNG production plays in Russia’s energy landscape, signaling the nation’s determination to assert itself as a major contender in the global LNG market.
