Pavel Zavalny outlined the directions for a “breakthrough to the East” in energy policy

The Chairman of the State Duma Committee on Energy, President of the Russian Gas Society spoke at the plenary session of the Far Eastern Energy Forum in Yuzhno-Sakhalinsk on September 28, 2022.

“Right now, we are experiencing, in fact, the breakdown of the model of the geopolitical structure of the world, a change in the model of the world economy, the center of which ceases to be Europe and, conditionally, the West, and the emphasis is sharply shifting to the East.

For the Russian gas industry, speeding up these processes carries serious risks. Thus, according to REA forecasts, a decrease in gas exports until 2030. due to the European direction it can amount to from 55 to 105 billion cubic meters. This is a significant challenge. The answer could be a “breakthrough to the East” in several directions, and Sakhalin plays an important role in this breakthrough,” Zavalny noted.

The first direction is diversification of pipeline exports. The implementation of the Power of Siberia 2 project will provide 50 billion cubic meters. exports from the same resource base on which exports to Europe were based. In terms of regulatory support, it is necessary to create conditions for the accelerated development of gas transportation infrastructure, including through the establishment of economically justified tariffs for gas transportation through gas pipelines and its sale, taking into account inter-fuel competition, as well as the development of mechanisms to support companies that compensate for the negative effects of changes in conditions in target markets.

Active development of LNG is required. At the same time, it is important to objectively assess the technical and technological capabilities of implementing Russian LNG projects, taking into account sanctions complications, in order to minimize the risks of project failure, accelerate technical re-equipment, and focus government support measures for the LNG industry. “It is important not only to meet the targets - at least 80 million tons. LNG by 2030, but try to reach 120 million tons. The market, taking into account both the current situation and development prospects, is ready to consume such volumes,” believes Pavel Zavalny.

To expand domestic demand for gas, it is necessary to develop an economic model and mechanisms for social gasification using liquefied gases. It is important to attract independent gas producers in the regions of presence, for example, the Krasnoyarsk Territory, Irkutsk Region, Yakutia, to participate in it, and to ensure gas supplies, including from the LNG infrastructure in Sakhalin and Kamchatka. The maximum possible gasification will give up to 30 billion cubic meters. additional gas consumption within the country. Another 10-15 billion is the potential for replacing liquid motor fuels with compressed and liquefied gas.

The next task, the solution of which is important for overcoming the current crisis, is the accelerated development of large projects in the petrochemical industry. Their implementation requires the availability and conditions of preferential access to hydrocarbon resources, accelerated import substitution, reorientation of logistics for the import of technologies, equipment and components in friendly countries, appropriate state support and regulatory support.

“It is equally important to continue working to achieve targets for the development of a low-carbon economy, hydrogen energy, regulatory support and government support for this area. Methane hydrogen for the electric power industry, the so-called blue hydrogen from natural gas for all types of transport, have significant prospects, including from the point of view of reducing the carbon footprint and increasing the energy efficiency of the Russian economy,” the chairman of the Energy Committee is confident.

Pavel Zavalny emphasized the importance of Sakhalin as a pilot region in a number of areas, primarily LNG gasification, hydrogen projects and climate regulation. “I hope the projects will be successfully implemented, and this will allow us to extrapolate the experience of Sakhalin to other regions,” he noted.