Russian Energy Minister's Views on Russia's Role in Global Energy Market

By IndraStra Global News Team

By IndraStra Global News Team

Image Attribute: A file photo of Russia’s Energy Minister Alexander Novak

On November 15, 2019,  an article was published in "Energy Policy" — a Russian-language magazine in which Russia’s Energy Minister Alexander Novak said, "We project that within five years we will be able not only to maintain our positions on the global markets but also to boost oil exports by 20-25 mln tonnes (to around 280 mln tonnes) and gas - by 40-45 bln cubic meters (to about 300 bln cubic meters by 2022)."

According to the latest reports. In 2018, Russia boosted crude exports by 2.9% compared with 2017 to 260 mln tonnes, while gas exports gained 4.9% to 220.6 bln cubic meters.

Minister Novak issued the following statements through that article; 

1. To maintain Russia's leadership position, it is necessary today to analyze how energy will change tomorrow.

2. The production restriction is not permanent and will be used only in situations where it is necessary for Russia or does not contradict its interest.

3. By 2035, Russia's share in the LNG market will be 15% -20%, and we will be the top three world leaders in its production.

4. By 2020, renewable energy capacities in Russia will reach 2.2 GW, and the power generation will reach 3.8 billion kW. h.

5. Coal mining in Russia in 2019 will reach 445 million tons, and in 2020 - 453 million tons. Export is expected to be approx. 215 million tons by the year-end (2019) and 220 million tons in 2020.

6. In the near future, we plan to complete the work on a bill that will introduce a reverse excise tax on ethane and liquefied petroleum gases. (NOTE: According to Rusmininfo, the reverse excise tax on ethane will amount to 9 thousand roubles per ton, its introduction will attract approximately US$ 24-27 billion of investments into the petrochemicals sector.)

7. The Russian oil and gas industry provides energy security not only to our country but is also one of the main guarantors of stability to the world energy market.

8. A preliminary list of thermal power plants has been made which are going to be included in the comprehensive energy modernization plan (to be executed by 2025). A minimum of 250 billion rubles (US$ 3.92 billion) are planned to be allocated for the implementation of the plan.

9. Russia will soon implement necessary "incentive measures" — which, in turn, will create the conditions for increasing the production capacity & output of large-tonnage polymers by 2025.

10. In the end, our primary task is to be able to predict possible scenarios of events and find optimal solutions.