Russian LNG Unfazed By U.S. Sanctions

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Russia’s energy industry faces a new round of U.S. sanctions—including on oil projects in any location if a designated entity holds more than 33 percent. And in Europe, where Russia’s gas giant Gazprom currently holds a large share of the gas supplies, Poland and Lithuania are buying U.S. LNG in an effort to shake off Russian dominance.

Despite the sanctions and cold shoulders from Poland and Lithuania, Russia still has plans to boost its LNG capacity and exports, with one of its major LNG export projects focusing on Asia, more specifically China, as its destination. The LNG project has relied on Chinese funding to bring the project to completion.

By securing funding from China, Russia is not only finding alternative sources of financing in the face of U.S. sanctions; it’s also securing sales volumes in the fastest-growing LNG import market.

Russia’s President Vladimir Putin said earlier this year that the country not only can—but will—become the world’s biggest LNG producer. Although Putin didn’t specify a timeframe for reaching this ambitious goal, should Russia significantly boost LNG production and exports, it could potentially upend the global LNG trade flows and exporters’ market shares within the next decade…

Read more : Oilprice, 02.11.2017