27 Dec 2019 09:43

Updated Energy Strategy-2035 raises Russian gas output forecast, slashes LNG projection

MOSCOW. Dec 27 (Interfax) - The updated Energy Strategy for the period to 2035 that the Energy Ministry has submitted to the government has raised the forecast for natural gas production in Russia to 850 billion-924 billion cubic meters in 2035, while reducing the forecast for liquefied natural gas (LNG) output by almost a third to 70 million-82 million tonnes.

Earlier versions of the strategy drafted in the summer of 2019 had far lower forecasts for natural gas production for 2035 - 757 bcm in the conservative scenario and 875 bcm in the optimistic scenario.

"The achievement of the set goal in these areas will require ensuring gas production in the range of 795 bcm-820 bcm in the period to 2024, and in the range of 850 bcm-924 bcm in the period to 2035," the updated strategy stated.

The October version of the strategy projected that Russia would produce about 60 million tonnes of LNG in 2025 and increase production to over 100 million tonnes per year by 2035. Furthermore, Energy Minister Alexander Novak said in the fall that Russia could produce 140 million tonnes of LNG by 2035, and the CEO of LNG producer Novatek , Leonid Mikhelson backed this forecast.

The updated strategy stated that Russia plans to produce 46 million-65 million tonnes of LNG in 2024 and 70 million-82 million tonnes in 2035.