Russia Liquefied Natural Gas (Lng) Market
There has been a considerable rise in Russia's LNG export volumes and production capacities in the last five years. For instance, there was only one large-scale gas liquefaction plant in the country towards the end of 2016. However, as of 2019, the LNG production potential has tripled by almost 30 million tonnes. Also, as part of the Yamal LNG project, three production lines were launched at Russia's largest gas liquefaction plant in Russia in 2017-18.
Russia is a major exporter of natural gas. The primary factors contributing to increasing exports of Russia are transportation through the ocean and expansion of trade routes. It is also attributed to the production capacities that enhance trade balance. The exports continue and remain unaffected despite the declining demand for raw materials due to the pandemic. Furthermore, the market influence of Russia as an LNG exporter is growing. This is accredited to the presence of the world's largest natural gas reserves and the logistical options to deliver to Europe and Asia along the NSR (Northern Sea Route) at competitive prices.
Additionally, the privatization of the natural gas sector has boosted LNG exports and GDP. Moreover, there are two major export terminals, and the Russian Federation is collaborating with private companies for four more export terminals. Besides, gas is becoming a fuel of choice in hard-to-electrify sectors in Asia. Thus, LNG suppliers are projected to invest more to ensure steady supply due to the growing demands.