Sanctions Force Russia to Delay Plans for Major LNG Output Increase
Russia has delayed plans to sharply expand its liquefied natural gas (LNG) production, as Western sanctions continue to restrict access to foreign capital, equipment, and critical technologies.
The Gaze informs about it, referring to Bloomberg.
Russian Deputy Prime Minister Alexander Novak said sanctions imposed by the United States and its allies have effectively derailed Moscow’s ambitions to raise annual LNG output to around 100 million metric tons. The target was central to Russia’s strategy to capture roughly 20% of the global LNG market by 2030.
Sanctions have limited Russia’s ability to secure international financing and procure specialized equipment, while also complicating overseas deliveries.
One of the few major exceptions remains the Yamal LNG project, operated by Novatek, which has continued exporting despite broader restrictions on Russia’s energy sector.
Yamal LNG, located on the Yamal Peninsula and drawing gas from the South Tambey field, is Russia’s flagship LNG facility, with a production capacity of up to 16.5 million tons per year. Its continued operation underscores the uneven impact of sanctions across Russia’s energy infrastructure.
Despite setbacks elsewhere, Russia has increased LNG shipments to China. In November, Russia became China’s second-largest LNG supplier after Qatar, overtaking Australia. According to Chinese customs data cited by Bloomberg, Russian LNG exports to China more than doubled year-on-year to about 1.6 million metric tons for the month.
As The Gaze previously reported, European Commission President Ursula von der Leyen has revealed that the EU continues to pay Russia around €1.5 billion each month for fossil fuel imports.
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