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Tech Providers' Exit Hits Russia's Bold LNG Plans

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The exit of Western technology partners is compounding the impact of the departure of Western majors on Russia's ambitious LNG plans. Moscow has already quietly backed off a pre-Ukraine war target to produce up to 140 million tons per year of LNG by 2035. It now aims to reach 100 million tons/yr sometime next decade, up from roughly 33 million tons/yr currently, according to Deputy Prime Minister Alexander Novak. The new goal still looks optimistic in the face of Western sanctions, but Russia's LNG plans have taken on greater importance after the loss of the European market for its pipeline gas. Russia promises support to domestic producers of liquefaction equipment, as leading LNG player Novatek seeks to scale up its operational Arctic Cascade technology, which so far remains insufficient for large trains. Russian LNG developers are also looking for non-Western import options to get their hands on the equipment and technology needed to expand the strategic sector.

Topics:
LNG Projects, Sanctions, Ukraine Crisis
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