Gazprom`s export monopoly comes to end

Gazprom is losing ground in LNG exports

The Russian Ministry of Energy grants Rosneft and Novatek the right to export liquefied natural gas from their Arctic fields.


A new bill from the Russian Ministry of Energy includes the gradual liberalization of export regulations on liquefied natural gas (LNG), Minister Aleksandr Novak informed this week. According to Novak, both state-owned oil major Rosneft and the privately owned gas company Novatek will be allowed to export LNG. For the latter, the liberalization exclusively includes the Yamal LNG, the major project currently under development on the eastern shore of the Yamal Peninsula.

Until now, only Gazprom has been allowed to export gas, including LNG. Gazprom`s monopoly on pipeline gas remains untouched by the new lay. As previously reported, both Rosneft and Novatek have earlier indicated that they also want to break up Gazprom`s pipeline monopoly.

According to the draft law, “only state-owned companies and companies which already have been allowed to build LNG terminals”, will be entitled to get LNG export licenses. Other companies will have to apply for licenses at the Ministry of Energy. Among them is the Alltech Group, which is planning a LNG plant on the coast of the Pechora Sea. According to Kommersant, the Pechora LNG project does not yet have the necessary license for the construction of an LNG plant.

The Pechora LNG project includes the construction of 2,6 million ton per year LNG plant, as well as adjacent port and pipeline infrastructure. Alltech General Director Maksim Barsky still believes his company eventually will get the needed changes its licenses. “We believe that we have the same rights as Novatek”, he says to the newspaper.