Russian Government to Cancel LNG Export Duties

Thursday, November 10, 2005
The Russian government may cancel export duties on liquefied natural gas (LNG) following a request from Gazprom, says an RIA Novosti report. The gas giant plans to build two LNG plants near the giant offshore Shtokman gas field and in East Siberia for export to the U.S. market. The move is being discussed by a government committee and is set to be put to Prime Minister Mikhail Fradkov for approval. Both Russia and the U.S. view LNG as the centerpiece of their energy dialogue. U.S. imports of LNG are forecast to increase 10-fold by 2025 and Gazprom is clearly positioned to play a major supplier role. The Shtokman shelf holds an estimated 3.2 trillion cubic meters in proven natural gas and 31 million tons in gas condensate reserves and could deliver significant volumes of LNG to the United States for the next 50 years. Source: RIA Novosti
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