situation report

Russia: Shareholders Give Final Approval for LNG Development Project in the Arctic

1 MIN READSep 5, 2019 | 15:57 GMT

What Happened: Russian energy firm Novatek and other global oil companies have approved the final investment decision for a liquefied natural gas (LNG) plant on Russia's Gydan Peninsula, World Oil reported Sept. 5. Meanwhile, the shareholders of the Sakhalin-1 oil and gas project are looking to construct an LNG plant in Russia's Far Eastern port of De-Kastri.

Why It Matters: Both projects are notable milestones in Russia's strategy to secure an additional 10 percent of the global LNG market within the next 10 years. Growing demand in China, India and other countries will help Moscow to achieve its goal, although Russia will face growing U.S. competition in global LNG markets.

Background: Russia has recently been attempting to develop its energy resources in the Arctic by offering tax breaks to its energy giants, such as Rosneft and Gazprom, for committing to energy projects in the area.

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