Russia offers LNG to Saudi Arabia from Yamal project

YamalBy importing LNG, Saudi Arabia aims to meet the country’s domestic electricity demand. (Image source: creativenature.nl/Adobe Stock)Russia is ready to sell gas to Saudi Arabia after the launch of the first loading of liquefied natural gas (LNG) at the Novatek-led Yamal LNG project in the Arctic, said Vladimir Putin, the President of Russia

During the launch ceremony in Arctic tundra, Putin urged Khalid al-Falih, minister of energy in Saudi Arabia, to buy its LNG to save oil, according to Reuters.

Russia is one of the biggest producers of natural gas and seventh biggest LNG exporter around the world.

This comes in line with the decision of OPEC and non-OPEC oil producing countries to curb oil output till the end of 2018. Saudi Arabia, the biggest producer in the OPEC, and Russia, the non-OPEC oil giant, agreed to curb a global crude supply glut.

Speaking about supplying LNG to Saudi Arabia, Leonid Mikhelson, one of the affluent businessmen in Russia and head of Novatek, Russia's largest independent natural gas producer, discussed gas projects with Saudi officials, said the source.

Yamal LNG, which is 50.1 per cent owned by Novatek and 20 per cent by France’s Total, aims to double Russia’s share in the global LNG market by the end of 2020.

The first phase of Yamal LNG project was completed in December 2017, with other phases due by 2018 and 2019. It is scheduled to start selling fuel under long-term contracts after April 2018, Mikhelson said to the press.

The import of natural gas from abroad is a long-standing plan of Saudi Arabia to produce a higher proportion of electricity to meet the country’s domestic demand.

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