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Russia plans to increase LNG production

Russia is expected to increase LNG production to 140 mln tonnes by 2035, according to its LNG development plan, Russian Energy Minister Nikolay Shulginov said in an interview to Kommersant daily. 

In 2020, Russian LNG production amounted to 30,5 mln tonnes, up 3,5% on the year, according to Rosstat, national statistics agency.

In order to achieve this target and attract required investments, Russia should ensure long-term stable framework for investors and therefore does not plan to introduce export duties for LNG, as it could be detrimental to the plans, he said. 

Russian government is also considering additional support for natural gas production in the traditional producing region of Nadym-Pur-Taz, he said without providing specific details. The support could come through changes in tax regulation, for example. 

Russian government supports to allow Rosneft to export 10 bcm of natural gas on the agency agreement with Gazprom, he said adding that this would be an experiment within the legal framework. According to the law, Gazprom holds export monopoly right for natural gas.

He also mentioned that he expects domestic coal consumption will decline, but still will stay in 2040 in Russian energy balance. Power generation will have to switch to newer, more efficient coal-burning technologies or/and switch to natural gas, he added.
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