Gazprom proposes to add LNG to the ruble of the gas scheme Ifax


Moscow-Russian gas producer Gasprom has proposed expanding the gas ruble scheme for pipeline gas to include liquefied natural gas (LNG), Interfax news agency said on Monday, senior manager. Quoted.

A proposal from Gazprom’s deputy director, Kirill Polous, came after Russia moved last week to take control of the Sakhalin 2 LNG plant in retaliation for western sanctions.

Signed by Russian President Vladimir Putin, this order establishes a new company that will take over all the rights and obligations of Sakhalin Energy Investment.

Energy company Shell and Japanese trading companies Mitsui and Mitsubishi own less than 50% of Sakhalin Energy.

Russia accounts for about 8% of the world’s LNG supply, with 40 billion cubic meters (1412586668859.5 cubic feet) of overcooling gas annually supplied primarily by Sakhalin 2 and Novatek’s Yamal LNG, Russia’s largest LNG plant.

Putin said in March that the world’s largest producer of natural gas would demand payments for pipe gas in the ruble from countries he called unfriendly.

Many of Gazprom’s largest customers in Europe were cut off after refusing to comply with the new rules.

“This is a matter of pipeline gas exports and LNG adjustments,” Polous said, adding that there is foreign exchange competition between pipeline gas sold in the ruble and LNG taxed in dollars. ..

Unlike the sale of pipe gas, most of Russia’s LNG is consumed in Asia. In Europe, Spain is one of Russia’s LNG buyers.

Russia earned $ 7.3 billion from LNG exports last year, but received $ 55.5 billion from pipe gas exports, according to the State Tax Department.

Neither Gazprom nor the Ministry of Energy responded to Reuters’ request for comment.

“Pipeline gas transactions with European counterparts, unfriendly counterparts, are taking place in the ruble, but such measures do not cover LNG,” Russia’s TASS news agency said.

Before the recent conflict in Ukraine, which Moscow calls a “special military operation,” Russia will produce 140 million tons of LNG by 2035, a quarter of the world’s LNG exports today. I was planning that.

Since then, it has suggested that this goal may need to be delayed.

Jason Neely