Russia’s LNG production could double as a result of the approval of plans for the construction of two gas liquefaction plants. The country is currently capable of producing about 26.3 million tons per year of LNG, and the two new plants will have a combined capacity of 25.9 million tons per year
The larger of the two new facilities will be Arctic LNG 2, which the privately-owned company Novatek intends to build on the Gydan Peninsula. This plant will have three production trains, each capable of turning out 6.6 million tons per year of LNG.
Meanwhile, state-owned Rosneft intends to build Far East LNG in the eastern port of De Kastri. This plant’s single production train will be able to produce 6.1 million tons per year of LNG.
These projects will put Russia in a good position to cover the supply deficit that may hit the global LNG markets by 2023, said Fauziah Marzuki, an analyst for Bloomberg NEF. “Projects are now being lined up to capture that gap in the market,” she said.