MOSCOW, March 22. /TASS/. The most favorable environment for new liquified natural gas (LNG) projects is expected in Russia within the next 5-15 years, according to Deputy Prime Minister Alexander Novak.

"The program [long-term program for LNG production development in Russia - TASS] suggests that it is necessary to create LNG clusters most actively within the next 5-15 years when the environment on the market is the most favorable for new projects," he said.

Fields at Yamal and Gydan, on the coast of the Sea of Okhotsk and the Arctic Ocean, the Far East, including Sakhalin, in the north of the Krasnoyarsk Region and the Murmansk Region, as well as offshore projects, are expected to become potential large-capacity LNG production hubs in the first place considering the resourcing and logistical accessibility for LNG tankers. Moreover, the launch of gas chemical facilities on the base of LNG clusters is under consideration, according to Novak.

The Russian Energy Ministry has drafted a long-term program for development of LNG production in the country, he said, adding that it is mainly targeted at expansion of gasification and energy provision in substituent entities of the Russian Federation, as well as investment projects due to development of low-tonnage LNG consumption, creation of a new area of the Russian industry on LNG equipment production.

LNG is currently used actively for generation of electricity, low-tonnage LNG consumption is expanding gradually, Deputy PM noted. "Analysts expect natural gas consumption to be steadily on the rise within the next 15-20 years. Meanwhile, the growth rates of LNG demand will exceed the growth of pipeline gas demand," he added.

According to Russia’s Energy strategy, LNG production in the country is to rise to 140 mln tonnes per year by 2035. Russia’s share on the global LNG market is expected to reach 20% by that time.