Export short-list – only state-owned companies and Novatek to be able to supply LNG abroad

The Ministry of Energy speaks of the “phased liberalization” of liquefied natural gas (LNG) export: only state-owned companies and Novatek’s project Yamal LNG will receive this right for a while. Although the draft law was almost approved by the Government, the mechanism of the granting of export permission isn’t clear. But the Ministry of Energy, according to Kommersant, managed to achieve a key role in the issue of export licenses, to which the Presidential FEC commission also contended.

The draft law on LNG export provides for the “phased liberalization”, the Ministry of Energy’s Head, Alexander Novak stated yesterday; the export right will be received by only the state-owned companies (Rosneft and Gazprom) and the Novatek’s project Yamal LNG. Today only Gazprom has this right. The Minister confirmed that, according to the draft law, in addition to the state-owned companies the LNG export will be allowed subsoil users, whose licenses include the construction of LNG plant or gas transportation for its liquefaction. In March, Rosnedra issue a permit on LNG plant construction only to one private company – Novatek, which will launch an enterprise with capacity of 16 million tons per year in Yamal in 2016.