Putin Says Russia Will Become World's Largest LNG Producer

Russian President Vladimir Putin said Thursday that he was pleasantly surprised at the pace of construction of the liquefied natural gas (LNG) plant in Russia's Yamal Peninsula, and noted that maintaining such a pace would allow Russia to become the world's largest LNG producer.

ARKHANGELSK (Sputnik) — Last November, Russian Minister of Natural Resources and Environment Sergei Donskoi said that the country recognizes current world trends in the developing LNG market and plans to lead it amid implementation of the first liquefied natural gas (LNG) project in Russia's Arctic on the Yamal Peninsula.

"If we act… at the same pace… then of course, Russia, without any doubt, not only can, but will become the largest producer of liquefied natural gas in the world," Putin said during a video conference.

Earlier in the day it was announced that Russia's NOVATEK gas producer plans to start talks with potential partners in the Arctic LNG 2 liquefied natural gas project in a year and a half.

Moreover, the first liquefied natural gas (LNG) deliveries under Russia's Yamal LNG project will enter the spot market and will be followed by long-term contract deliveries next year.

The Yamal LNG Project involves the construction of facilities to supply 16.5 million metric tonnes of LNG per year from the resource base of South Tambey in Russia's Arctic Yamal Peninsula. Novatek partnered with China’s CNPC, France’s Total and the Silk Road Fund in the $20 billion LNG project.