Energy Achievements Discussed at RUSSIA EXPO

February 20, 2024

Energy Achievements Discussed at RUSSIA EXPO

The plenary session ‘Leadership and Sustainability of the Russian Energy Sector’ was held at the international RUSSIA EXPO, kick starting the National Achievements Forum theme day. Session participants discussed what the industry has achieved, and the role played by the regions in its achievement.

According to Russian Deputy Prime Minister Alexander Novak, the energy industry is one of the Russian economy’s most important sectors, and over the past 20 years it has developed in significant ways.

“This economic growth is the result of Russian President Vladimir Putin’s personal efforts, and it has the industry seeing its greatest performance in 20 years. The sector amounts to approximately 20% of Russian GDP. It accounts for around 60% of exports and 30% of federal budget revenue,” Novak said.

The greater part of Russian exports belongs to oil, and Russia accounts for 10% of its global production. Roughly two thousand deposits are being developed in the country. At the same time, according to the Deputy Prime Minister, oil is becoming more difficult to reach, for which reason the Russian Government is supporting the industry and providing assistance in the development of offshore deposits and production in Eastern Siberia. The development of new deposits entails the development of the industry as a whole, including oil refining, and, according to Novak, Russia is now faced with the task of achieving technological sovereignty in the oil industry.

Natural gas is no less important to the nation. Russia is the world’s second-largest producer and exporter of this resource, and the Deputy Prime Minister emphasized that connecting the unified gas supply system to the system in the east was a priority of historical proportions.

“Doing so will improve the reliability and efficiency of the industry, develop new deposits, and ensure further development of gas infrastructure,” Novak said.

Another area of importance is the production of liquefied natural gas. According to the Deputy Prime Minister, Russia has moved from zero to fourth place globally in this market, with production at 31.5 million tonnes.

“The President has set us the task of achieving at least one hundred million tonnes of liquefied natural gas production by 2035. It is an ambitious task and one that requires the development of LNG production clusters in Yamal, Sakhalin, and the Baltic. Our goal is to claim at least 15–20% of the global LNG market,” Novak said.

In addition to global markets, Russia is on its way to becoming one of the most developed countries in the world in terms of gas infrastructure, with current levels at 73.8%, expected to reach 83% by 2030, according to the Deputy Prime Minister.

There continues to be a demand for coal production in Russia. Despite all forecasts, coal now accounts for 30% of the global energy balance. Russia ranks fifth in coal production, with 438 million tonnes in 2023, and the Kemerovo Region accounts for more than half of that, though new centres are being developed in the Far East and Siberia.

“A programme has been approved for the development of the coal industry, and it includes a major focus on the development of modern coal mining technologies. Your modern coal mine is essentially an underground factory: highly mechanized, highly productive, and equipped with modern technologies. We will continue to develop our coal industry in this direction. The key to success is modern technologies and the development of the coal chemical industry,” Novak said.

Electricity accounts for a major part of Russia’s energy economy. One and a half million people are employed in the industry, with half of those making energy. System capacity is approximately 255,000 megawatts, with 86% from clean energy sources, which exceeds the global average. Additional demand currently stands at roughly 4,000 megawatts.

“We are talking about new generation in Krasnodar, Crimea, Siberia, and the Far East that will connect new consumers and further the country’s economic potential,” the Deputy Prime Minister said.

 Novak also spoke at length about the petrochemical industry, noting its continued growth and Russia’s emergence as an exporter in the area.

The session was attended by regional heads, with Governor of the Khanty-Mansiysk Autonomous Region Natalia Komarova, Governor of the Yamalo-Nenets Autonomous Region Dmitry Artyukhov, Governor of the Krasnoyarsk Territory Mikhail Kotyukov, Governor of the Murmansk Region Andrey Chibis, Governor of the Kemerovo Region Sergey Tsivilev, and Head of the Republic of Tatarstan Rustam Minnikhanov all speaking about the role of the energy economy in the development of the constituent entities.

The Forum is being organized by the Government of the Russian Federation, the Ministry of Energy of the Russian Federation, and the Directorate of the Exhibition of Russia’s Achievements. The operator is the Roscongress Foundation.

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