“Building modern LNG facilities takes up to 5-7 years, sometimes even up to 10 years. We have to put all the right conditions in place for developing this sector. This includes reflecting on possible gradual liberalization of LNG exports and organizing production of the required technical equipment here in Russia.” Vladimir Putin said at the meeting of Commission for Strategic Development of the Fuel and Energy Sector and Environmental Security.
The meeting was examining the resource base’s current state and development issues, including developing Russia’s continental shelf, drafting a state industrial security policy concept, and energy exports.
The meeting also examined measures for guaranteeing transparency at energy sector companies with state stakes.
“Investors show great interest in our fields, and there is also a lot of interest in financial investment in this sector,” said Vladimir Putin.
“Our archaic estimation methods meant that Russia’s resource base has been undervalued. This has a direct impact on how attractive our energy sector companies are for investors. The market actors – the energy companies and the investors – have to have accurate information about reserves, and our natural assets must have a proven, clear and objective value.”
“We are to develop and approve new methods for classifying reserves that follow international standards as closely as possible.”
“Last year, as you know, shrinking markets and lower gas exports cost the Russian budget billions of dollars.”
“But the forecasts all predict that global demand for gas will grow over the coming 20 years, above all in Asia, but I think demand will grow in Europe too, especially now that some of Europe’s main industrially developed countries are renouncing nuclear energy. The liquefied natural gas market is set to become more and more important.”
“Russia’s share of the global liquefied natural gas export market is only 3.6 percent at the moment. If we do not follow an active policy we will risk losing this market almost entirely to our competitors. We are to remember too, that building modern LNG facilities takes up to 5-7 years, sometimes even up to 10 years. You all know that these are very capital-intensive projects too, of course,” Mr. Putin said.
LNG World News Staff, February 14, 2013; Image: kremlin.ru