Home »Fuel and Energy » World » Russia may abolish LNG export duty by year-end

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  • Nov 9th, 2005
  • Comments Off on Russia may abolish LNG export duty by year-end
A Russian government trade commission may decide to abolish export duties on liquefied natural gas (LNG) later this month, the committee's head Economy Minister German Gref said on Tuesday.

Russia is not yet producing LNG but it is home to several big projects that aim to supply the supercooled fuel to US, European and Asian markets, where LNG demand is expected to grow rapidly in the next few years. Gref said Russian gas firm Gazprom had proposed the abolition of duty, currently 40 euros per 1,000 cubic metres, but the committee had not reached agreement and would return to the issue at its next meeting at the end of the month.

Among its plans to produce LNG, Gazprom wants to develop the huge Shtokman gas field in the Arctic Barents Sea. It has also agreed in principle to take a quarter stake in the Shell-led Sakhalin-2 project on Russia's Far East coast.

"We will decide on LNG export duty after studing Gazprom's business plan," Gref told reporters.

He said the abolition of duty could be a temporary measure, adopted for a long enough period to make LNG projects viable.

Copyright Reuters, 2005


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