NOVATEK co-owner: Russia should have target to control 20 percent of global LNG market

Russia has substantial gas reserves and is likely to control up to 20 percent of the global market for liquefied natural gas (LNG) in future. This forecast was presented on Wednesday in Moscow by Leonid Michelson, CEO and co-owner of Russia’s largest private gas producer NOVATEK,.

“I am of the opinion that the energy strategy of Russia should set a 15 to 20 percent share of the international LNG market as main target. Russia has sufficient reserves for that”, Michelson said.

The Ministry of Energy in Moscow expects that the capacity for LNG production in Russia will grow to about 60 million tons in 2025. Thus, Russia could control 13 percent of the global LNG market.

At present, Russia has only one LNG plant. It is located on the island of Sakhalin in Russia`s Far East and has a capacity of 10 million tons per year.

The NOVATEK Group and its partners plan to build an LNG plant on the Yamal Peninsula in the north of Western Siberia, with an annual capacity of 16.5 million tons. The gas giant Gazprom and Russia’s largest oil producer Rosneft are also considering LNG projects.

Sources: Voice of Russia, RIA Novosti

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