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Publish Date: Thu, 09 Nov 2023, 11:22 AM
MOSCOW, Nov 9 (Reuters) - Russia will not abandon its plans to increase liquefied natural gas (LNG) production to 100 million tonnes a year because of U.S. sanctions, Russian Foreign Ministry spokeswoman Maria Zakharova said on Thursday.
In a new package of sanctions announced this month, the United States targeted a major Russian entity involved in the development, operation and ownership of a massive project in Siberia known as Arctic LNG-2.
Russia is seeking to boost production of sea-borne super-cooled gas as its pipeline gas exports to Europe, once a key source of revenue for Moscow, have plummeted amid sweeping Western sanctions imposed over the conflict in Ukraine.
"No one in our country is going to abandon large-scale plans for this project or for similar projects. The development of LNG infrastructure is our priority in the energy sector," Zakharova told a weekly briefing.
Russian companies have already learned to overcome such obstacles, she added.
Arctic LNG-2 would be Russia's third large-scale LNG project and is designed to help Russia achieve its stated goal of accounting for 20% of the global LNG market by 2035, up from around 8% currently.
A U.S. State Department spokesperson said on Wednesday that the Biden administration was working closely with partner countries over sanctions on the Arctic LNG-2 project as a January deadline looms on a wind-down of transactions with the plant.
Novatek (NVTK.MM), Russia's largest LNG producer, has a 60% stake in the project, and plans to start production by the end of this year.
The sanctions and wind-down have drawn the attention of France's TotalEnergies(TTEF.PA) and Japan Arctic LNG - a consortium of Mitsui & Co (8031.T) and JOGMEC. They each hold a 10% stake in the project and are wary about the impact of the measures.
China's CNPC and CNOOC Ltd (0883.HK) also each have a 10% stake.
https://www.reuters.com/world/europe/russia-says-it-wont-ditch-plans-boost-lng-output-due-us-sanctions-2023-11-09/