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    Russian LNG demand could reach 17.4bn/yr by 2035: govt

Summary

Russia wants to promote the use of LNG as a vehicle fuel and as a means of supplying gas to energy users in remote areas.

by: Joe Murphy

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Natural Gas & LNG News, Europe, Liquefied Natural Gas (LNG), Premium, Political, Supply/Demand, News By Country, Russia

Russian LNG demand could reach 17.4bn/yr by 2035: govt

Demand for LNG in Russia could reach 3.4-5.3bn mby 2024 and up to 12.6-17.4bn m3 by 2035, the government has estimated in its programme for developing the LNG sector, published on March 22.

LNG consumption as a motor fuel should reach 1.1bn m3 in 2024 and 5.2-7.6bn m3 in 2035, according to the government. Russia is eager to expand the use of LNG in long-haul trucking, to reduce transport costs and emissions. The government noted that a lack of demand was hindering the sector's development, and said there simultaneously needed to be a rise in the number of vehicles running on LNG, a reduction in capital costs for liquefaction plants and refuelling stations and an increase in domestic production of necessary equipment. It also wants to encourage LNG use as a fuel for mining equipment and for ship bunkering. 

The government additionally views small-scale LNG supply as a solution for providing gas to areas that have no access to pipeline supplies. It estimates that LNG demand for these gasification purposes will reach 2.3-4.2bn m3 in 2024 and 7.4-9.8bn m3 in 2035. Consumers in the more sparsely-populated regions of East Siberia and the Far East will account for much of the LNG demand, the government said. Yakutia in particular will account for a large share, as it already has gas resources and low-tonnage liquefaction capacity. Some fields in the remote region can serve as standalone centres for small-scale LNG production, the government said.

Earlier this month Russian prime minister Mikhail Mishustin called for the development of small-scale LNG supply in the Far East, to increase access to gas and support economic growth. He estimated that only 18% of the population in the region had access to gas, which is three times lower than the national average. Russia wants to increase the share of the population with gas access from the current 70% to 83% by 2030, under a RUB1.9 trillion (US$25bn) regasification plan.