Russian government approves energy strategy until 2050

The Russian government has approved the country’s energy strategy through 2050. Oil production is expected to rise to 540 million tons, while gas production is projected to reach 1.107 trillion cubic meters by that year.

"At the President’s instruction, this key document for the country’s development has been updated," Prime Minister Mikhail Mishustin said during a meeting with his deputies.

Following the meeting, the Russian government announced that the strategy had been officially approved by Chairman of the Government Mikhail Mishustin.

"The fuel and energy complex is now the country's key export sector. Russia will continue to remain a world leader. Along with oil, gas and coal supplies, we will continue to increase exports of liquefied natural gas and nuclear technologies," Russian Deputy Prime Minister Alexander Novak said at a meeting.

Oil and gas production to be increased

As reported by TASS, oil production in Russia is expected to increase from 531 million tons in 2023 to 540 million tons by 2030, maintaining that level through 2050. Oil exports are projected to rise slightly—from 234 million tons in 2023 to 235 million tons in 2030—and will also remain stable at that level until 2050.

According to the strategy, the capacity of the export infrastructure for oil and petroleum products is expected to increase from 530 million tons in 2023 to 550 million tons by 2030.

Oil refining volumes in Russia may increase by around 3% compared to 2023, reaching approximately 283 million tons by 2050.

Exports of oil products are projected to decline by 3% in 2030 compared to 2023, falling to 127 million tons. By 2036, exports may decrease to 124 million tons, with a slight increase to 125 million tons by 2050.

Domestic consumption of oil products is expected to grow by more than 8% by 2030, rising from 144 million tons in 2023 to 156 million tons. This figure may reach 159 million tons in 2036 and slightly decline to 158 million tons by 2050.

Russia's gas production will reach 1.107 trillion cubic meters by 2050, pipeline gas exports to reach 197 billion cubic meters, and  exports of liquefied natural gas (LNG) to reach 241 billion cubic meters, according to the  Energy Strategy.

In particular, gas production is projected to grow from 637 billion cubic meters in 2023 to 853 billion cubic meters by 2030, reaching 965 billion cubic meters by 2036 and 1.107 trillion cubic meters by 2050.

Total gas exports are expected to increase significantly, rising from 146 billion cubic meters in 2023 (including 101 billion via pipeline and 45 billion as liquefied natural gas, or LNG) to 293 billion cubic meters by 2030 (151 billion via pipeline and 142 billion as LNG). By 2036, exports may reach 376 billion cubic meters (197 billion by pipeline and 179 billion as LNG), and by 2050, they are projected to grow to 438 billion cubic meters (197 billion by pipeline and 241 billion as LNG).

“The scenario assumes a twofold increase in export volumes compared to 2023, driven by the development of pipeline infrastructure and the implementation of planned liquefied natural gas projects. This will enable a full reorientation of exports to new markets,” the strategy states.

Key development priorities for the gas industry include mitigating the negative impact of the European Union’s refusal to cooperate and ensuring the cost-effective satisfaction of growing domestic demand.

The design capacity of export gas pipelines to the countries of the Far East and the Asia-Pacific region will increase from 30 billion cubic meters in 2023 to 98 billion cubic meters in 2030, 2036, and 2050, the document notes. 

"The implementation plan for the energy strategy will be developed by the Energy Ministry and submitted to the government within six months," the government's statement reads.

"The strategy's initiatives are aimed at accelerating the development of oil and gas processing, expanding the regional gas supply network, and ensuring the domestic market is adequately supplied with petroleum products at affordable prices for all categories of consumers," the statement said. 

This also includes plans to create conditions for redirecting oil and gas supplies to new markets in "friendly countries", increase oil transshipment capacity in Arctic and Far Eastern ports, using the potential of the Northern Sea Route, as well as to accelerate the connection of the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok gas transportation systems with the unified gas supply system.

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