Russia Raises H1 LNG Exports 38.5% Year-on-Year to 5 Million mt

July 10, 2013

Russia increased LNG exports 38.5% year-on-year in the first half of 2013, to 5 million mt, according to data released Tuesday by the Far East branch of Russia's customs service, Platt's reports.

Russia exports LNG from the Sakhalin 2 LNG plant in Russia's Far East. In 2012, deliveries of LNG produced at the plant amounted to 10.8 million mt, Gazprom said previously.

Gazprom holds a 50% stake plus one share in the project, which consists of two trains with a nameplate capacity of 4.8 million mt/year each. Gazprom is considering construction of a third train, to add 5 million mt/year in capacity to the project.

Other project partners include Shell with a 27.5% stake, Japan's Mitsui with 12.5% and Mitsubishi, with 10%.

Currently, only Gazprom has the right to export LNG produced in Russia.

The Russian government is considering extending this right to independent producers, who will otherwise need to conclude agent agreements with Gazprom to export LNG produced in Russia in the future.

A final decision on this has been repeatedly pushed back since Russia's largest independent gas producer Novatek requested the amendment in late 2012.

Most recently, Russian energy minister Alexander Novak has said exports may be liberalized from January 1, 2014.

Source: Platts, 2013.