Gazprom, Novatek target more Asia LNG shipments
Russian gas giants Gazprom and Novatek recently agreed to construct liquefied natural gas (LNG) terminals on the Yamal Peninsula in the Arctic.
The projects would further the Russian government's plan to export more gas to Asia in light of falling demand and regulatory uncertainty in Europe.
The two new terminals would be located near Novatek's proposed, 16.5-million-ton-per-year (MMtpy) LNG facility on Yamal, which it is building in partnership with France's Total. The collective capacity of both terminals would eventually breach 30 MMtpy.
Novatek and Total have requested the right to market LNG directly to customers without assistance from Gazprom, which has a monopoly on Russian gas exports. The Russian government is still reviewing the companies' proposal.
At present, Russia has only one operating LNG plant—the 10-MMtpy liquefaction terminal run by Gazprom and Royal Dutch Shell on Sakhalin Island—despite being the world's largest producer of conventional gas.
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