Russian State Duma Gives Preliminary Approval to LNG Export Liberalization

November 18, 2013

The Russian State Duma has passed the first reading of a bill to liberalize LNG exports.

The bill was submitted to the Duma by the government.

The federal bill “On the amendments to Article 3 of the federal law on gas exports and Articles 13 and 14 of the federal law on the foundations of state regulation of foreign economic activities” proposes giving the right to export LNG, along with Gazprom and its subsidiary, also to those producers who licenses to use mineral resources as of January 1, 2013 provided for building LNG plants or forwarding gas to LNG plants.

According to the bill, state companies where the state holds more than 50% of shares will also be allowed to export LNG. Such companies have to be hydrocarbon producers within the Russian territorial waters and the continental shelf, including the Black Sea and the Sea of Azov, and they have to produce LNG from gas extracted from those areas or from gas extracted according to production sharing agreements, including those concluded before the coming into effect of the law. Subsidiaries of such companies (more than 50% of shares) producing LNG also will obtain the right to export LNG.

Source: Russian Energy Ministry Press Office, 2013