ISLAMABAD; Oct 25, 2018: Russia seeks to double its liquefied natural gas (LNG) export market share in less than a decade. While Russia tops the list of countries having huge natural gas reserves, it produced less LNG than what the United States did in 2016.
Also, Russia’s share in the LNG global export market was about 6 percent in 2017. Qatar led the pack as major exporter of LNG.
Sanctions-hit Russia now aims to produce more LNG with installation of new facilities, and increase its LNG export as demand for LNG is increasing worldwide.
Asia is the world’s largest consumer of LNG. Last year Russia signed agreement with Pakistan to supply LNG and build the North-South gas pipeline (Read below).
The introduction of new facilities will allow Russia to increase its share in the global LNG market to 15 percent by 2025, Russian Energy Minister Alexander Novak said in Moscow on Thursday.
“To strengthen Russia’s position on the world market, three more projects will be launched by 2025, namely the Arctic LNG-2, the Baltic LNG, and the expansion of LNG production in the Far East.
In general, this will increase the share of Russian LNG in the market to 15 percent by 2025,” he said at a government meeting.
Earlier in the day, Novak said that in 2017, Russia’s share in the LNG market was about 6 percent.
Earlier this month, the Russian Federal Customs Service’s data showed that Russia increased its exports of the liquefied natural gas by almost 73 percent up to 26.8 million cubic meters (some 950 million cubic feet) in January-August compared to the same period last year.
Russia considering LNG supplies to Pakistan
Russian giant Gazprom is considering the potential of delivering liquefied natural gas (LNG) supplies to Pakistan.
The country’s foreign minister Sergey Lavrov said in February this year the company is focusing on the construction of the $10 billion North-South pipeline from Karachi to Lahore under the intergovernmental deal (G2G) signed in 2015, but LNG supplies are an option.
The two countries signed an intergovernmental cooperation agreement for the delivery of liquefied natural gas in October last year.
The three-year deal under negotiations would extend automatically for another three years after the initial period expires.
The agreement aims to create favorable conditions for the delivery of Gazprom’s LNG shipments to regasification terminals in Karachi, a statement by the Russian ministry of foreign affairs had said.
Pakistan currently has two LNG import terminals in operation in the port city, however, with a total capacity of around 9.5 mtpa, a significant supply shortfall of 19 million tons of LNG per annum is still expected.
The country is therefore planning to develop new LNG terminals at Port Qasim to further alleviate the gas shortage and it is expected that by 2020 Pakistan’s import capacity will grow to about 30 mtpa.