14 May 2021 13:25

Energy Ministry: highest priority options for monetization of Yamal gas are those with LNG, gas chemicals

MOSCOW. May 14 (Interfax) - The highest priority scenarios for monetization of gas on the Yamal Peninsula are those options that include the development of gas chemistry, as well as the possibility of using the resource base to enter new markets, that is LNG production, Russian Energy Minister Nikolai Shulginov said in an interview with Energy Policy magazine.

"All of these projects are currently at the stage of elaboration and are undergoing a thorough analysis," he said.

Speaking of balancing the interests of the state when exporting pipeline gas and LNG, Shulginov noted: "Of course, there is competition in the global market between pipeline gas and LNG, this cannot be denied."

"But firstly, there is competition between Russian gas and LNG from the U.S. and Qatar. When a pipeline has been in operation for a long time and gas supplies are stable, this in itself becomes a competitive advantage. Competition between Russian pipeline gas and LNG is rather far-fetched," he said.

"Far from all European countries are connected to our gas pipelines, so it is good that Spain, for example, has an opportunity to buy Russian LNG. Moreover, the mobility of LNG supplies allows Novatek to quickly redirect supplies to Asia when prices there rise sharply. So, while there is a window of opportunity, we need to develop the LNG market and develop Yamal and Taymyr," the minister said in summary.