Great ambitions: Russia expands on the LNG market. OSW Commentary Number 394 17.05.2021.

Kardaś, Szymon (2021) Great ambitions: Russia expands on the LNG market. OSW Commentary Number 394 17.05.2021. [Policy Paper]

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Abstract

Expansion on the liquefied natural gas market has become one of the priority areas in Russia’s energy policy in recent years. This has been reflected in the statements made by government representatives and the many strategic documents that have been adopted recently. In particular, on 16 March this year the government approved a document entitled The Long-term Programme for the Development of Liquefied Natural Gas Production in the Russian Federationwhich envisages ambitious plans for further development in this area: an output of 80 to 140 million tonnes of LNG in 2035. The assumptions of the strategy fit in with the trend of regular increases in the production and export of Russian LNG which have been visible in recent years (from 11 to nearly 30 million tonnes in 2016–19). It can be concluded from these announcements that Russia is planning to increase its share in the global liquefied natural gas market to over 10%, and possibly even up to 20–30%. The expansion in this sector is also an argument for Moscow to strengthen its political and military presence in the Arctic. Increasing the Russian share on the European LNG market may also be a kind of remedy for Gazprom’s loss of influence in some EU countries.

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