Russia to Break Gazprom’s Monopoly on LNG Export

Russia’s Energy Ministry is working on a proposal to decrease the hurdles for Russian companies to export liquefied natural gas (LNG) and hydrocarbons. 

Russia has only one LNG plant controlled by Gazprom, while Rosneft and Novatek recently signed contracts to develop LNG terminals. Rosneft signed an agreeement with ExxonMobil to develop a LNG project in Russia's Far East. Novatek clinched a deal with CNPC for a joint development of the Yamal LNG project. 

A source familiar with the document said to Reuters on Tuesday that the law would allow LNG exports by companies that hold licences 'to build LNG plants, or to send the gas for liquefaction to a plant determined by the government.’ 

At the moment Gazprom is the only company allowed to ship gas out of Russia. The increasing competition from Australia and United States, combined with a growing demand for LNG makes crucial this kind of export liberalisation. The draft proposal is circulating for discussion.