Vol. 334 No. 11 (2023)

DOI https://doi.org/10.18799/24131830/2023/11/4469

Resource sufficiency of large capacity LNG projects in Russia

Relevance. Qualitative and quantitative transformations taken place under the impact of a number of interconnected facts, destabilizing for the world economy. Contemporary conditions direct gas producing countries, including Russia, towards enhancing the competitive advantages to maintain their positions in the world gas market, first of all, towards increasing the share of liquefied natural gas in the market. It is impossible without sufficient resource base to expand production of operating large capacity LNG projects. Aim. To analyze the effect of management-economic mechanisms on the expansion of resource sufficiency to provide the production of liquefied natural gas. Object. Large capacity LNG projects. Subject. Financial and fiscal framework applied for implementation of large capacity LNG projects. Methods. Empirical and economic-statistical. Results. Institutional incentives for provision of resource sufficiency have allowed the authors to reveal different approaches to stimulating resource sufficiency depending on the business tax systems, implementing LNG projects. The paper demonstrates differentiation in natural resource users’ reaction to tax benefits. Using licensing system a resource user intensifies his activities in development of hard-to-recover reserves, which increases resource sufficiency of LNG projects. Whereas using treaty system (which is, in fact, incentive framework of taxation) the effect is insignificant to stimulate geological exploration. This in future may occur as a decrease in liquefied natural gas production as well as possible negative social-economic consequences in a region. The authors suggest legislative consolidation for business operating in the condition of production sharing agreement, of mandatory minimum – 10 % of net profit spent for geological exploration.

Ключевые слова:

Field, resource, natural gas, gas condensate, liquefied natural gas, tax incentive, production sharing agreement

Авторы:

Irina V. Sharf

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