Russia aiming for 20 percent of world LNG market by 2030
The Russian government plans to actively promote production of hydrocarbons and the development of LNG projects, and the country aims to have a 20 percent share of the world liquefied natural gas (LNG) market by 2030, Deputy Energy Minister Kirill Molodtsov said at the Sakhalin Oil and Gas 2013 conference.
"The Russian Federation is currently the largest world power in terms of gas reserves, with 21 percent of all world reserves, produces about 19 percent of the world's gas, and also currently exports about a fifth of the world's gas. Russia is interested in taking its rightful place on the LNG market as well," Molodtsov said.
"The goal of the prospects and objectives that are being established by the federal government and our state companies is the active expansion of gas liquefaction projects. With all the prospects that we now have, we expect that Russia's share of the world LNG market should exceed the 12-13 percent that we initially planned to have by 2030. Now our target is 20 percent of the world LNG market," Molodtsov said.
He said the government is creating the necessary tax regime for LNG projects, is working on optimizing and creating preferential conditions for profit tax and export duties, the natural resource extraction tax regime and the corporate property tax.
"These initiatives are being actively considered and specific instructions from the president and government have already been issued in relation to the creation of conditions for already implemented projects and projects that will be implemented soon," Molodtsov said.
He said that, taking into account international experience, the government is also looking at the possibility of liberalizing LNG exports. "The Energy Ministry, in order to achieve the target parameters, has prepared proposals that are now being discussed in the government and will make it possible to soon consider the issue of liberalization and creating favorable conditions for a possible new mechanism related to LNG produced in Russia," Molodtsov said.