The government actually abandoned a large-scale program to localize the production of gas equipment for liquefied natural gas (LNG) production projects. This is evidenced by the updated version of the “Breakthrough to LNG Markets” project, from which it follows that the financing of the project will decrease by more than 100 times – from 35 billion rubles to 300 million. Kommersant drew attention to the radical change in the passport of the ambitious project.
Back in 2021, the total cost of the program was estimated at 127 billion rubles, of which 35 billion came from state funding, and the rest was planned to be raised with the help of large gas producers, primarily Novatek and Gazprom. The document intended to achieve 40% localization by 2024, 60% by 2028 and 80% by 2030. It follows from the new version that in 2022, a 40% localization of production has suddenly been achieved, while the total cost of the program has fallen to 89.32 billion rubles.
The Ministry of Industry and Trade confirmed to the publication that the program had undergone some changes, but assured that "the Breakthrough to LNG Markets project is being implemented in accordance with the plan." Proryv assumed the creation of 18 types of equipment for medium and large-scale LNG production by 2030, prototypes were supposed to be obtained as a result of research and development (R&D).
It was about creating our own competitive models of discharge pumps, cryogenic valves, membrane elements of the primary barrier for LNG storage systems, liquid expanders, etc. Such projects should be implemented by JSC Afrikantov OKBM (part of Rosatom), JSC Konar, LLC "Plant Logicroof", JSC "Kazankompressormash".
However, experts doubt that it would have been possible to achieve a breakthrough in the LNG field even with the previous version of the program, since it was more focused on making profit than on creating competitive domestic samples.
“The government decree currently in force to subsidize R&D is primarily aimed at generating revenue, and the current situation requires efforts primarily to create new technologies and products,” says Andrey Nikipelov, CEO of Atomenergomash (part of Rosatom).
He also noted that the industry lacks "long money" – investment loans with low rates, at the level of 2-3% per annum, and with current rates, it is much more difficult to develop production, in his opinion.
In June, the head of Novatek, Leonid Mikhelson, asked for support for the industry. He insisted that in order to increase the volume of LNG exports from Russia, large investments in the industry are needed: in particular, according to Mikhelson, 24 billion rubles should be spent on R&D alone. At the same time, he emphasized that the industry will not be able to find money on its own – state support is needed.