Russian PM names LNG exporters

July 16, 2014

Dimitry MedvedevThe Russian Government has granted exclusive rights to four companies to export liquefied natural gas (LNG),

Russian Prime Minister Dimtry Medvedev signed a resolution on 14 July granting LNG export privileges to OJSC Gazprom, its subsidiary Gazprom Export, OJSC Rosneft, and OJSC Yamal LNG.

Export licenses will be issued by Russia's Ministry of Energy.

”You know that liquefied natural gas is a very promising area of energy production globally. All countries are working on this issue, and Russia is no exception in this sense," Medvedev said.

"Although Russia has huge reserves of natural gas and is one of the largest exporters of gas via pipelines, so called pipeline gas, it should not overlook other development opportunities in gas-fueled power generation, such as gas liquefaction and LNG export under contracts.”

Gas Export Law

Gazprom lost its monopoly on LNG exports when Russia amended its 2006 Gas Export Law in December 2013 and liberalized export restrictions.

in addition to Gazprom (and its subsidiaries), the right to export LNG was given to companies that:

  • as of 1 January 2013, have provisions in their subsoil use license providing for (i) the construction of an LNG facility, and/or (ii) the transportation of gas extracted under such subsoil use license to an LNG facility for liquefaction; or
  • operate on subsoil plots situated within inland sea waters, territorial sea, or continental shelf, having directly or indirectly at least 50 percent of state participation in their charter capital and their subsidiaries.

The effect of the 2013 amendments is that the right to export LNG is extended to state-controlled Rosneft and Russia's largest independent gas producer, Novatek, which holds an 60% equity stake in Yamal LNG.

“It’s the Government’s responsibility to approve a list of companies with the exclusive right to export LNG,” Medvedev said on Monday.

Image at right: PM Dmitry Medvedev meeting with deputy prime ministers (from government.ru)

Related news:

Gazprom appoints Burmistrova to head gas export, 16 July 2014

Yamal LNG progresses, 21 May 2014

Total taps Technip for Yamal LNG, 16 May 2014

Gazprom adds fifth LNG tanker, 21 January 2014

Russia needs to up investment, 19 November 2013

STX launches ice-class LNG carrier, 12 November 2013

Contractors chosen for Russian LNG project, 30 September 2013



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