LNG Needed to Spur Far East Growth: Russian PM

Russian prime minister Mikhail Mishustin has called for the development of small-scale LNG supply in the Russian Far East to increase access to gas supply and support economic growth, according to a government statement on March 15.

The level of gasification in the Far East is very low and this is a problem that needs addressing, Mishustin said at a meeting on the region's development. The Far East is sparsely populated, and so pipeline infrastructure to many settlements is not feasible. Development of its gas reserves has meanwhile been impeded by the lack of a market.

"Despite its large reserves of this natural raw material, the level of gasification [in the Far East] is three times lower than the national average," the PM said, estimating that only 18% of the population had access to piped gas. "It is quite obvious that without a modern reliable fuel and energy base we cannot talk about accelerating economic growth in the Far East."

LNG deliveries to energy users in containers is an alternative to pipeline infrastructure that should be studied, the PM said. He also drew attention to the fact that two thirds of thermal power plants in the Far East run on coal.

Russia wants to increase the share of the population with access to gas from the current 70% to 83% by 2030, under a RUB1.9 trillion (US$25bn) regasification plan, in order to lower energy costs and reduce emissions.