Energy Week summed up

Russian President Vladimir Putin, in a speech at a plenary meeting of the Russian Energy Week, summed up the development of the industry. He spoke about the impact of Western sanctions on the prospects for the development of the fuel and energy complex (fuel and energy complex). He recalled the consequences of Europe's refusal of energy resources from the Russian Federation.

The West has imposed restrictions on banking, freight, insurance, and so-called price ceilings on Russian oil and gas. But the sanctions have accelerated the fuel and energy industry's sovereignty and pushed Russia toward a historic reversal toward the Global South, the East, its closest neighbors in Central Asia.

Changes in the extraction and processing of energy resources, service and logistics, in cooperation with foreign partners, have accelerated. In 2022, Russia recorded a record amount of energy consumption, which is a reliable sign of economic growth. Vladimir Putin expects this record to be updated this year, according to a correspondent for The Moscow Post.

The Path to Sovereignty

Russia's fuel and energy policy is aimed at achieving full sovereignty in technology, personnel, and finance. The domestic market has come to the fore of structural transformation, its qualitative development, in-depth processing of oil and gas, the creation of maximum added value of final products, the president said.

Vladimir Putin drew the attention of leading energy companies to the fact that "the priority should be the supply of fuel to domestic consumers," set the task to consistently increase the reliability of energy supply to the regions. The President proposed to work on the qualitative development of the national market, increasing its capacity.

It is necessary to radically increase the share of production of Russian equipment, especially critical. Bring to a new level the training of qualified personnel and form its own mechanisms for financing investment projects.

The President set the task to move to domestic standardization and certification systems in the oil and gas and petrochemical industries in order to stimulate import substitution. He noted that the organizations of the fuel and energy complex are substantively engaged in the development of Russian software and digital solutions.

The goal is to achieve self-sufficiency in equipment and machines for the oil and gas sector and electricity transmission. Since 2014, the production of more than 140 types of products has been mastered, including equipment for drilling and production of hydrocarbons, heat exchange equipment, catalysts and reagents, high-voltage cables and switches, and much more.

Launched petrochemical plant in Tobolsk. Amur Gas Processing Plant is increasing its capacity. A complex for the production of LNG and gas processing in Ust-Luga, as well as the Amur Gas Chemical Complex, is being built.

It is important to continue supporting such projects and increase the potential of such sectors of the domestic economy as the production of large-tonnage polymers, products of medium and low-tonnage chemistry. In particular, a large-scale modernization of the refinery is underway in the field of oil refining.

Large-scale LNG plans are based on a strategy of technological independence. The volume of investments will exceed 6 trillion rubles. LNG production should triple, to 100 million tons per year. The products of new projects will provide, in particular, the loading of the Northern Sea Route.

NOVATEK is considering the possibility of building a new large-capacity LNG project in the Murmansk region, consisting of three liquefaction lines with a capacity of 6.8 million tons each. In Murmansk, there is a Center for the construction of large-tonnage offshore structures. The first platform for liquefaction of gas - the starting line of the Arctic SPG-2 project - is already located in the production area.

NOVATEK and Gazprom agreed on a scheme for the construction of a gas pipeline with a capacity of 40 billion cubic meters per year before the promising Murmansk LNG project. The project takes into account the needs for gasification of Karelia and the Murmansk region. Up to 10 billion cubic meters of gas will be spent on gasification of these regions. The project of gasification of the Kamchatka Territory using LNG has been launched.

It is planned to combine gas transmission systems of the west and east of Russia, which will allow gas to be supplied to many regions of Siberia and the Far East. Putin proposed expanding the list of citizens receiving subsidies for gas equipment and its installation. Under the social gasification program, it is possible to connect more than a million households with gas networks. Of these, 375 thousand are already connected, - said the president.

Technological independence has been achieved in the nuclear power industry. Rosatom at the same time, Putin stressed, is simultaneously building 22 power units abroad, which accounts for about 80% of the global reactor market: Akkuyu NPP in Turkey, Rooppur NPP in Bangladesh, the fourth power unit of El Dabaa NPP in Egypt. New areas of nuclear generation are being mastered, including low-power nuclear power plants in ground and floating versions. The first floating station "Akademik Lomonosov" has been operating since 2020 in Chukotka. In the near future, four more similar power units will be deployed here. The first low-power ground-based nuclear power plant in Russia is being built in Yakutia.

Energy of the Russian Federation is already the "greenest" in terms of structure, but the goal of achieving zero emissions remains. The share of nuclear power plants in the country's energy balance is almost 20% and will grow to 25%. In this regard, Russia does not deviate from earlier international obligations.

In particular, it works with neighbors to expand the use of natural gas within the borders of the EAEU and the CIS. There is an agreement on gas supplies to Uzbekistan through Kazakhstan, on other projects for the supply of energy resources to these countries.

The unique potential of Russia's water resources opens up great opportunities for the construction of hydroelectric power plants. This will provide cities and towns, industrial and agricultural enterprises, households with inexpensive and completely "green" energy.

Rotate in Export

Russian gas and coal companies are switching supplies to the Asian market. The contribution of China, India, Indonesia, Malaysia and Vietnam to the global economy exceeded the combined share of the United States and all EU countries combined. By 2050, demand for natural gas will grow in all regions of the world, and in Asia - from 21 to 30% of global consumption. Europe's share in global demand will more than halve - to 5%. Thus, the reorientation of Russian gas exports to Asia is natural.

Russian gas exports to the People's Republic of China are developing - in 2025, the Power of Siberia gas pipeline will reach a design capacity of 38 billion cubic meters per year. Already today, supplies on it regularly exceed the volume of contractual obligations, - said Vladimir Putin, adding that exports along the Far Eastern route will amount to another 10 billion cubic meters per year. The project of gas transportation through the territory of Mongolia is being discussed.

Russia can expand the capabilities of the Turkish Stream and Blue Stream gas pipelines. Proposes at the first stage of the gas hub project in Turkey to create an electronic trading platform focused on Europe. Azerbaijan is also interested in this project.

With the participation of RusHydro, more than 350 facilities were designed and built in 54 countries. The company supplies its technological solutions to 17 countries, including countries in Africa, the Middle East, Central and Central Asia, Latin America, increases the transfer of technologies and provides engineering for the entire period of operation of the stations.

Along with the expansion of the Eastern Railway Range - BAM and Transsib - a number of new transport projects are being worked out. They will allow flexible maneuvering of coal supplies, both through the ports of the Far East and through the north-west and south of Russia.

To expand supplies to the countries of the Asia-Pacific region, Africa, Latin America, a plan was prepared to develop the infrastructure for the export of Russian oil. Russia works with partners within the framework of OPEC +, given the objective market dynamics of oil supply and demand, investment programs of the industry. OPEC + member countries fully fulfill their obligations and successfully cope with all challenges.

You look and wonder

You look and wonder how Europe is "freezing its ears" to spite Russia, which has successfully built the work of its energy system after the imposed sanctions. The European Union is creating problems that it cannot yet resolve, "Putin said.

The West politicized energy trade, made a mess of the global energy market, including the oil market.

The Northern Streams were blown up - no one is investigating. Russian energy sources ensured the economic and social well-being of the European Union. But Europe switched to LNG purchases, which led to higher costs. The decision changed global LNG trade. Global excess LNG capacity will decline by 2025 and LNG prices are yet to rise.

Europe overpays for the supply of oil, oil products and gas. As a result, the EU economy is near zero, with industrial production in the negative zone since March. But Europeans cannot force Kyiv, which is dependent on them, to open a second transit route for Russian gas.

The Russian fuel and energy complex has maintained stability despite the refusal of European states from Russian energy resources. The tanker fleet has been increased, new payment mechanisms have been created, insurance of Russian oil exports. Russia is pursuing a course of cooperation in the field of energy with reliable countries and will make a significant contribution to balancing the global energy market. He will develop partnership and cooperation ties with those who are interested in this, "Vladimir Putin said in conclusion.