Putin: Russian LNG exports should not weaken existing pipeline gas positions

Russian President Vladimir Putin said on Friday that exports of liquefied natural gas (LNG) should not lead to weakening of existing positions the country has in the pipeline gas market.

Putin was speaking during a meeting on LNG exports following his visit to Novatek’s Yamal LNG export plant and the inauguration of the first cargo onboard the 172,600-cbm LNG tanker Christophe de Margerie.

Novatek has built the largest LNG plant in Russia on the Yamal Peninsula. The country has also the Sakhalin LNG export project, led by Gazprom.

Putin stressed during the meeting that Russia needs more LNG export projects.

“Russia can and should occupy a decent niche on this market. Today, as you may be aware, it remains fairly modest,” he said.

Putin also said that the production and export of LNG should not lead to weakening of existing positions on the pipeline gas market.

“Moreover, they need to be retained and, of course, strengthened. The work should be constructed in such a way that the LNG projects do not compete with our pipeline gas,” he said.

The President said the demand for liquefied gas needs to be actively promoted within Russia as well.

“Its use can be expanded, including through supplying it to remotely located customers without pipeline gas and moving public transport to cleaner and more environmentally friendly natural gas engines. In this sphere, we already have good special programmes,” Putin said.

LNG World News Staff