Russia needs to build infrastructure, develop LNG to redirect energy exports to new markets - PM

MOSCOW. July 26 (Interfax) - Russia will have to seriously diversify its energy exports, primarily to the Asia-Pacific region (APR), which will require developing transport infrastructure, Prime Minister Mikhail Mishustin said during the government's strategic session on the energy sector.

In order to meet national goals, Russia "needs to strengthen domestic demand for energy resources, expand the gasification of the regions," he said. "More and more Russian families need to receive a reliable and relatively inexpensive source of heating, energy. This will make it possible to make people's lives more comfortable and will have a positive impact on business activity," Mishustin said.

"It is important to create and develop major petrochemical projects. Our industry will need additional supplies of plastic, polymers and other specialized products in the coming years," he said.

Mishustin also said "we need to develop our own production of LNG [liquefied natural gas] to increase the mobility of our resources and make it easier to enter new markets."

"Another segment for expanding domestic demand is gas motor fuel. Its use can significantly reduce the transport costs of companies and our citizens, and reduce pollution in cities," he said.

"We need to seriously diversify exports, foremost by reorienting to countries in the Asia-Pacific region, while maintaining ties with friendly countries on previous forums, of course. And for this we need to develop transport infrastructure, build new and expand existing gas and oil pipelines, modernize railway services and, of course, build port capacity and transhipment terminals," Mishustin said.

"In future, it is no less important to establish the possibility for quickly changing the direction of commodity flows from west to east and vice versa. For example, by connecting the unified gas transport system oriented toward Europe with Power of Siberia projects and the Sakhalin-Khabarovsk-Vladivostok pipeline, building a kind of interconnector that will make it possible to respond far more flexibly to the price situation," Mishustin said.

"For all such projects in the coming years it is necessary to not only organize procurements of equipment in friendly countries, but also expand our own production, set up capacity to manufacture mining, oil and gas equipment, develop shipbuilding," Mishustin said.