Russia plans to increase production of natural gas by 40% until 2035 — Putin

Russia plans to increase production of natural gas by 40% until 2035 — Putin

Russia plans to increase its production of natural gas by 40% until 2035, President Vladimir Putin said.

“Preparing the draft national energy strategy until 2035, we include a significant – 40 per cent increase in natural gas production. If in 2014 we produced 578 billion cubic meters, then by 2035 we plan to produce 885 billion cubic meters,” Putin said that the Forum of Gas Exporting Countries.

According to him, Russia is planning to “implement a number of infrastructure projects with partners from the European Union. It is also in talks with Turkey trying to agree on the southern route [pipeline].”
“Our country will also export gas and increase supplies in the eastern direction – here, very positive work is underway with our partners from Asian countries: China, India, and others,” the Russian leader said.

“We are ready for closest cooperation with our partners in the Forum of Gas Exporting Countries, with other interested countries in order to meet the global demand for energy and sustainable development of the world economy as a whole,” Putin said.
Growth rate of global natural gas consumption requires putting into operation additional gas pipelines
Putin noted that the growth rate of global gas consumption will require commissioning additional pipelines and expanding supply of liquefied natural gas.

“This [consumption growth – TASS] offers great opportunities for increasing production and exports of gas and at the same time presents serious challenge,” he said at the third Gas Exporting Countries Forum (GECF) summit on Monday. “Because you will need to radically speed up the development of new deposits, modernize refining capacity, expand gas transport infrastructure to commission additional pipelines and branched supply routes of liquefied natural gas,” he added.

Putin stated experts’ estimates, according to which the demand for gas in the world by 2040 will grow by 32% – to nearly 5 trillion cubic meters, while in 2014 the figure stood at 3.7 trillion cubic meters.

According to the President, the associated investments will pay off for decades. “And investors, of course, need clear and firm guarantees. However, the main thing – future consumers should hold the investment risks on a par with gas producers,” Putin said. “Everybody needs to pay for energy security: the exporting countries and the purchasing countries – which is fair and is fully in the spirit of market relations,” he added.

Putin recalled that last year the GECF summit was held in Moscow, and its desicions have helped to improve coordinating participating countries in terms of the industry development, laid the groundwork for the formation of a common approach to pricing and equitable sharing of risk between customers and suppliers of fuel. “I am confident that this meeting will be just as productive, and decisions that will be included in the final declaration, will give an additional impetus to our cooperation, will make our joint efforts on improving the international gas trade even more effective,” Putin said.

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