Russia on track for 2017 Yamal gas launch

Subject

Russia's ambitious liquefied natural gas project.

Significance

The first liquefied natural gas (LNG) from Russia's landmark Yamal LNG project is expected to be shipped by October. Yamal, in the Siberian Arctic, is enhancing an already strong position as a global gas exporter with the establishment of LNG production, an area in which Russia previously had limited expertise. The project weakens Gazprom's monopoly on gas exports and shows the Kremlin's willingness to accommodate private companies such as Novatek that can demonstrate success.

Impacts

• Yamal LNG's successful start suggests that Novatek bids to develop other LNG sites will receive a favourable hearing.
• Novatek's access to other LNG projects may require further legislative amendments.
• Gazprom's Yamal production, with gas transported by pipeline, is intended to replace ageing western Siberian fields.