UPDATE - Russia To Produce 83Mln Tonnes Of LNG A Year If Implements All Projects - Energy Ministry

YUZHNO-SAKHALINSK (UrduPoint News / Sputnik - 25th September, 2018) SAKHALINSK, September 25 (Sputnik) - Russia will be able to produce 83 million tonnes of liquefied natural gas (LNG) annually provided that all the planned projects in this field are implemented, the Russian Energy Ministry's senior official said on Tuesday.

"If all LNG projects are implemented, Russia will have a capacity to produce about 83 million tonnes of LNG [per year] ... The potential of LNG production in Russia will let [the country] increase its share on the LNG market from 4.5 percent to 15-20 percent by 2035," Alexander Gladkov, the head of the ministry's Oil and Gas Production and Transportation Department, said at the Sakhalin Oil and Gas Conference 2018.

Gladkov noted that the Sakhalin-2 and Yamal LNG plants had already been put into operation, while at least seven similar facilities were to be launched.

According to the ministry, there will be a strong demand for LNG spare capacity in the world by 2035, with the deficit estimated at 200 million tonnes, which could be offset by the Russian supplies.

Ryo Minami from the Japanese Ministry of Economy, Trade and Industry, in turn, said at the conference that Japan expected considerable growth of Russia's LNG supplies to Asia.

Japan, followed by China and South Korea, is the biggest importer of LNG.

The Shell country chair in Russia, Cederic Cremers, noted that Russia's plans to step up LNG production would face tough competition on the market.

Only North America is currently building facilities for annual production of 60 million tonnes of LNG, he pointed out, adding that the applications for new projects with a combined capacity of more than 470 million tonnes were in place.

Cremers stressed that Russia's LNG projects should receive state support and there was a need to create favorable tax regime and constantly work on costs reduction.