Russia accelerates construction of domestic LNG empire amid sanctions

Ngọc Vân |

In the context of the West tightening sanctions, Russia is confident that it can build a 100% localized LNG "empire".

Sharing with the InfoTEK portal, Russian Energy Minister Sergey Tsivilev said: I do not think Russia can not build its own liquefied natural gas (LNG) plant. We have made significant progress in developing domestic technology and equipment for LNG plants, refineries and petrochemical complexes.

Mr. Tsivilev revealed that Russia is developing turbines and heat exchangers itself - two important pillars in the chain of gas liquefaction technologies. However, core technologies, especially for projects in the Arctic - where conditions are harsh - still need to continue to adapt and localize more deeply.

According to Minister Tsivilev, this goal will not be achieved overnight. To thoroughly address the current challenges, we need more time and investment in the national science and industry foundation, he emphasized.

Russia is accelerating coordination between state-owned and private enterprises, while accelerating the application of domestic technology through public procurement mechanisms. This is part of a long-term strategy to realize Made in Russia LNG plants, both in terms of design, engineering and equipment.

Russia is currently the world's third largest country in LNG production, with an output of about 33 million tons per year. Of which, the Yamal LNG project accounts for 17.4 million tons and the Arctic LNG-2 is expected to reach 19.8 million tons when completed.

Anh: Sakhalin Energy
Russia is currently the third country in the world in terms of LNG output. Photo: Sakhalin Energy

In addition to the Yamal LNG and Sakhalin-2 in operation, the frontline for LNG development in Russia also includes major projects such as Arctic LNG-2 (tested in the summer of 2024), Ust-Luga LNG, Obsky LNG, Murmansk LNG and Arctic LNG-1, all of which are expected to be operational from now until 2050.

The Energy Strategy to 2050 sets out two cautious scenarios and targets. The cautious scenario assumes that current trends and current policies in the Russian fuel and energy sector will continue to develop without significant investment in development. On the contrary, the target scenario visages balanced growth by industry with minimum costs and realizes the country's export potential.

According to scenario 2, Russia aims to increase LNG output to 90-105 million tons by 2030, 110-130 million tons by 2036, and reach 110-175 million tons by 2050.

If it completes the localization of technology, Russia will not only strengthen its position as an LNG exporter but also build a closed energy ecosystem, less vulnerable to international sanctions.

Maintaining and expanding LNG transport routes across the Arctic, especially in the summer when non-ice ships can be used, will continue to be a strategic advantage for Russia. Minister Tsivilev said the Arctic LNG-2 trial operation in the summer of 2024 is a "run-up" for long-term ambitions.

Russia is gradually realizing its dream of owning a completely domestic liquefied natural gas value chain, despite technological and political challenges. With a clear production roadmap, a long-term strategy and a series of projects of the size of the Arctic, Russia's " autonomous LNG workshop" is gradually taking shape - a strategic card that cannot be underestimated on the global energy board.

Ngọc Vân
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