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Instructions following a meeting on development of LNG production projects

December 25, 2017

The President approved a list of instructions following the December 8, 2017 meeting on the development of liquefied natural gas production projects.

The Government has been instructed to approve a plan (roadmap) of priority measures to localise the manufacturing of critically important equipment for medium- and large-capacity LNG projects and the building of gas carriers.

Specifically, the Government has been instructed to submit proposals on measures to stimulate exploration projects in Russia’s Arctic regions and the development of reserves under prospective projects involving the production, transport, storage and use of LNG based on modern Russian technology. It will also consider the expediency of creating LNG transhipment and storage facilities in the Russian Far East to uphold Russia’s interests in the Asia-Pacific region.

In addition, the Government has been instructed to adjust some strategic planning documents, including Russia’s Energy Security Doctrine and the Transport Strategy through to 2030, as well as to upgrade the Energy Strategy through 2035 and the draft guidelines for the development of Russia’s gas sector through 2035, which will stipulate the following:

- identify potential threats to Russia’s energy security related to global LNG production and measures to prevent, minimise or cope with them in the context of major economic and political restrictions hindering the further development of Russian natural gas production and export;

- identify the priorities of state policy in the LNG sector and its development stages aimed at making Russia a global LNG production and export leader in the medium term;

- ensure import replacement in the LNG sector and identify measures to enhance the research, technological and human capacities in this sphere;

- ensure the priority use of Russian-made protected software platforms, process control system components, operating systems and software at industrial facilities to ensure these facilities’ information and telecommunication security;

- promote the development of the domestic LNG market by increasing the share of LNG in the Russian regions’ energy balance.

The Government has been instructed to draft measures to uphold the development of vehicles using LNG as a fuel, including municipal and freight vehicles, vessels, traction rolling stock, quarry and agricultural machinery, as well as to develop the relevant fuelling stations and service infrastructure.

Instructions to the Energy Ministry provide for developing small LNG power stations for remote regions. Instructions to the Energy Ministry, the Economic Development Ministry and the Foreign Ministry concern information and organisational support for Russian oil and gas companies aimed at signing long-term LNG contracts with foreign consumers and the emergence of these companies on new energy markets.

The Interior Ministry, the FSB, the Federal Service for Financial Monitoring and the Prosecutor General’s Office have been instructed to propose measures to prevent, reveal and preclude crime involving LNG production, transport, storage and use projects in Russian constituent entities and to ensure the implementation of these projects.

The Federal National Guard Service, the FSB, the Interior Ministry, the Energy Ministry and fuel and energy companies have been instructed to take additional measures to ensure the security and counterterrorism protection of fuel and energy facilities in the LNG sector.

The Transport Ministry has been instructed to take additional measures to ensure the security and counterterrorism protection of transport infrastructure and vehicles in the LNG sector.

December 25, 2017