Rosneft Clinches LNG Deal with Golar

Russia renewed its focus on LNG on Thursday, with Rosneft and Golar signing a Memorandum of Understanding.  

"Within the ambit of the memorandum the parties will analyze the possibility of employing Golar’s advanced FLNG (Floating Liquefaction of Natural Gas) commercialization technologies at Rosneft projects, potentially opening new markets to Rosneft, one of the leading gas producers in the world" reads the note released on Thursday. 

The company led by Igor Sechin sees the MoU as an instrument to strengthen production, while reducing upfront CAPEX for LNG plants.

In 2014, Rosneft reported a 49% increase in gas production to 56.7 bcm. The company is looking to increase its LNG focus, given the decision of the Kremlin to liberalise its export regulations for LNG (December 2013), while maintaing Gazprom’s monopoly on pipeline exports.

Last month, Gazprom discussed with Algeria’s Sonatrach joint LNG projects.

Last year, Rosneft and China National Petroleum Corporation (CNPC) said they are considering the supply of Russian liquefied natural gas (LNG) to China.