“The state Duma rejected the bill on gas export “Pechora LNG”

The state Duma at session on Wednesday rejected the bill, suggesting the possibility of gas exports from the project “Pechora LNG”.

The bill was introduced in may 2014 by Deputy Valery Yazev, who at that time was the head of the state Duma energy Committee.

Currently the rate at which the right to export users of the subsoil, the license of which, as at 1 January 2013 envisages construction of a plant for the production of natural gas in a liquefied state or direction of the extracted natural gas for liquefaction.

The rejected bill proposed to move the date of July 1, 2014. In the case of the adoption of this rule the ability to deliver LNG for export would get the project Pechora LNG, which in 2014 has made changes in the license terms under which the gas produced at the fields needs to be supplied for liquefaction.

In the opinion of the government of the Russian Federation on the bill (23 June 2014) States that it needs refinement, as further liberalization of the export of natural gas in a liquefied state it is necessary to conduct after the analysis of practices of implementation introduced into the law amendments and strategic and economic interests of the Russian Federation.

The state Duma Committee on energy, in its opinion (of February 8, 2018) the bill clarified that the sale of natural gas for export with the use of pipelines compared to LNG allows greater budget efficiency, because CNG is exempt from export duties, in contrast to pipeline gas.

The bill was rejected without discussion, by a simplified procedure under “clearing the legal debris” left over from previous convocations.

Pechora LNG is the only project in Russia that did not appear in the list of exporters under the law on liberalization of LNG exports, which entered into force on 1 December 2013. Currently, the project “Pechora LNG” on 51% belongs “Rosneft”.

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