Russia's Energy Ministry said that the country intends to infuse around $625 billion over the next two decades to increase oil production by around 10% and a additional $590 billion to add at least 33% to its gas production, Reuters reported. The oil and gas investment, which is part of a $2 trillion plus plan to develop the energy sector in the country by 2030, also includes Asian markets as the country develops resource fields in Siberia and the Far East.
“This will allow the Russian energy sector to lower its risk of being dependent on exports to one market, Europe,” the ministry said in a report published on Thursday, which details a strategy that was proposed earlier in 2009.
Russia expects to increase crude oil production to between 530 million and 535 million tonnes in 2030 from 488 million tonnes in 2008. To achieve this target, the country must replace depleted West Siberian deposits with expensive new developments further east. East Siberian fields, which contributed only 3% of oil production in 2008, will grow their share to 18%-19% by 2030, the ministry said.
The Energy Strategy-2030 plan envisages crude oil exports largely flat within a range of 222-248 million tonnes by 2030, compared to 243 million tonnes exported in 2008. Asia Pacific markets, led by China, Japan and South Korea, will increase their share of crude oil and refined product exports in Russia from the current 6% to 22%-25% by 2030. The ministry said projected oil investment of between $609 billion and $625 billion by 2030 would include $491-$501 billion on production and exploration, $47-$50 billion on refining and $71-$74 billion on transport.
Investment in the natural gas sector is expected at between $565 billion and $590 billion. Transport, along with pipeline projects, contribute $277-$289 billion of the amount. Russia intends to increase natural gas production to between 885 billion and 940 billion cubic meters (bcm) by 2030 from 664 bcm in 2008. Exports are seen increasing to between 349 bcm and 368 bcm in 2030, up 45-53%, compared to previous year.
Asian markets are expected to increase their share of gas exports from Russia to 19%-20%, from practically zero in 2008. Domestic demand for natural gas is forecast to rise between 32% and 40% to a range of 605-641 bcm, from 457 bcm in 2008, the ministry said in the report. It said new gas regions would increase their share of Russian natural gas output to 38-39 percent from only 2% last year. The Arctic region of Yamal should contribute 23%-24% of the Russian total by 2030. Russia also intends to infuse $68-$76 billion in the coal industry to increase production to 425-470 million tonnes by 2030, from 326 million tonnes last year.