Production and export of Russian LNG: the role and place of China

At the present stage, the production and export of LNG is one of the priority areas of the energy policy of the Russian Federation. Due to the evolving trend of rapid growth in the global LNG market, Russia’s competitiveness and leadership in the global gas market and the provision of opportunities for the country’s socio-economic development will largely depend on Russia’s ability to take a leading position in the field of LNG exports. The purpose of the article is to characterize the role and determine the place of China in the development of large-scale production and export of Russian LNG. The article assesses Russia’s position among the world’s largest LNG exporters, traces the development of large-scale LNG production in Russia and outlines the involvement of foreign partners in the implementation of Russian LNG projects. The article also assesses the contemporary energy strategy and natural gas supply of China as a country currently acting as a “premium” foreign partner of NOVATEK in the implementation of Russian large-tonnage LNG projects – Yamal LNG and Arctic LNG-2. The article concludes that China’s participation in Russian LNG projects is conditioned both by commercial interests, the desire to provide reliable channels for LNG imports, to promote the development of China’s production capacities and its entry into world markets in the production of special equipment for LNG and Arctic projects, and political considerations – the desire to raise the status of China as a large stakeholder in the Arctic and strengthen the comprehensive strategic partnership with Russia, by strengthening their economic basis and adding a new dimension of cooperation.

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