Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 21 February 2023 Author: Grzegorz Kuczyński
Russia’s Hydrocarbon Exports in 2022: Moscow Bets On Bigger LNG Output
Last year saw somewhat bittersweet results in Russia’s hydrocarbon exports and related figures. Although the country sold more oil, the situation will now deteriorate. Russia saw more modest gas sales figures, but the liquefied natural gas sector stands out.
Russia’s gas exports were down 25.1 percent to 184.4 billion cubic meters (bcm) in 2022 due to sabotage on the Nord Stream gas pipelines and European customers shunning Russian supplies, Deputy Prime Minister Alexander Novak said. He added that Russian supplies to China through the Power of Siberia 1 had increased 48 percent in 2022, reaching a record of 15.4 billion m3. In 2022 oil exports rose 7.6 percent, to 242 million tons. Russian oil production rose 2 percent to 535.2 million tons. “At the same time, due to the modernization of refineries, production of motor gasoline and diesel fuel increased by 4.4 percent to 42.6 million tons and 6 percent to 85 million tons, respectively,” Novak said in the column. Russia plans to sell more than 80 percent of its oil exports to what it calls “friendly” countries in 2023, Deputy Prime Minister Alexander Novak said. He added that these countries would also receive 75 percent of Russia’s refined oil products. “As for supplies to states that support illegitimate price restrictions, here our position is widely known and remains unchanged: such countries will not receive Russian oil,” he said. Against a decline in total gas exports, there was a soar in liquefied natural gas exports. “We place a high priority on developing liquefied natural gas technologies and increasing domestic output. Last year, LNG exports soared to 45.7 billion m3, up 7.9 percent. The world market is now fully global so LNG will be the priority fuel due to enhanced mobility,” Novak added. The Russian official says Russian LNG projects are among the world’s most competitive due to low mining and supply chain costs. According to Novak, Russian liquefied natural gas has a low carbon footprint. Despite some constraints, Russia places full emphasis on its LNG projects. Novatek noted that despite falling production and exports, Russia continued to launch new gas fields and increase its LNG production. Russia is planning to build gas liquefaction plants and the government had set aside 1 billion roubles for developing domestic gas liquefaction technologies. Novak promised to launch and partially finance four LNG facilities to produce gas on a both medium and large scale. There are 18 LNG projects planned in Russia. Yamal liquefaction plant relies upon Russian-patented Arctic Cascade liquefaction technology. A key element of the Russian LNG sector is the Northern Sea Route, where Russian export capabilities are the biggest.
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