• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 57 mins Wonders of Shale- Gas,bringing investments and jobs to the US
  • 1 min Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? To get Jared (Frisch School 2.8 GPA) a Mideast win with peace deal ? China greatest threat next 50 years.
  • 1 hour Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 5 mins Why is Strait of Hormuz the World's Most Important Oil Artery
  • 5 hours IMO2020 To scrub or not to scrub
  • 7 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 4 hours California's Oil Industry Collapses Despite Shale Boom
  • 1 hour Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 6 hours Devastating Sanctions: Iran and Venezuela hurting
  • 6 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 6 hours Shale to be profitable in 2019!!!
  • 2 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 1 hour "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader

Saudi Arabia To Consider Investing In Russia’s Arctic LNG Project

LNG

Saudi Arabia will consider investing in Russia’s Arctic LNG project, especially if it could be used to deliver LNG to the Middle Eastern country, Saudi Energy Minister Khalid al-Falih told Russian news agency TASS in an interview on Friday.

At this stage, of course, it is too early to talk about specific projects. LNG business is challenging, there is a lot of supply. However, we don’t think in terms of years, we think in terms of decades,” al-Falih told TASS.

Saudi Arabia should look into long-term projections, and if it finds the projects justified, it will consider investing in them, especially if part of the LNG output can be supplied to Saudi Arabia, the minister said.

Saudi Arabia is a huge market for gas, so we’re looking at existing projects like Yamal LNG, but we’re also looking at future projects with Russian companies that we can do elsewhere - Africa, Mediterranean,” TASS quoted al-Falih as saying.

Earlier this year, Russia’s President Vladimir Putin said that the country not only can—but will—become the world’s biggest LNG producer.

Russia is currently building LNG plant and export capacities in the Arctic—with the help of Asian partners, among others—that will compete in the future with supplies to Asia, the world’s top LNG importing region, from the leading exporting counties Qatar and Australia.

Currently, Russia has just one operating LNG export facility, Sakhalin, whose majority shareholder is Russian gas giant Gazprom. But soon the Yamal LNG project in the Arctic will become operational. The project plans to begin selling LNG on the sport market this year, and start deliveries under long-term contracts next year, Leonid Mikhelson, the chief executive of Yamal LNG’s majority shareholder Novatek has said.

According to a Wood Mackenzie report from April, this year will be a decisive year for Russian LNG, when the first ever multi-train Arctic LNG project – Yamal LNG – is commissioned. The Arctic LNG-2 project in northern West Siberia will be the second large-scale LNG project led by Novatek, after Yamal LNG.

Despite its huge conventional gas reserves, Russia’s share in the global LNG market is small, at around 4 percent, WoodMac says.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on June 03 2017 said:
    Saudi Arabia is a maladapted culture. Saudis do not invest in Saudi Arabia because Saudis do not like to work. Saudi owned companies are staffed by nepotism rather than competence. Saudi donates adequately so that Saudi foreign students receive their degrees regardless of merit. The Saudi Arabia population is growing explosively and has long past the carrying capacity of its oil reserves. Saudi military is ineffective because individuals do not share technical competence and planning with superiors, coworkers, nor subordinance.
  • GregS on June 02 2017 said:
    Why the heck doesn't Saudi invest in their own gas? I have no sympathy for these idiots

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News