Page 12 - RusRPTMar20

2.1 ​ ​Russia produced a record amount of gas in 2019
Last year, Russian natural gas production (excluding ancillary gas) grew by 3% to a set a new record of 690bn cubic meters​, reports Bank of Finland Institute for Economies in Transition (BOFIT).
The growth was mainly driven by liquefied gas (LNG) production, which increased by almost 50% as the Yamal Peninsula LNG production started to reach full capacity.
LNG production last year was approximately 40 bcm (29.5mn tonnes), accounting for 6% of total gas production. Other natural gas production increased by about 1%.
“According to most forecasts, Russian natural gas production is expected to grow by 1-2% per year over the next few years. Production growth is mainly constrained by the demand outlook,” BOFIT said.
Natural gas production is very strongly concentrated in the Yamal-Nenets region of Western Siberia, where there are long-established major deposits. However, production growth is focused on the Yamal Peninsula and Eastern Siberia. Novatek's new LNG project, Arctic LNG 2, is underway in the Yamal Peninsula and Gazprom is in the process of deploying the Kovykta gas deposit in Eastern Siberia.
About a third, or 250 bcm Russian gas production was exported last year. Exports increased by almost 6% as LNG exports almost doubled. Exports of pipeline gas remained almost unchanged.
Russia's LNG production is mainly export-oriented, with LNG accounting for 15% of exports last year. According to the January-September statistics, almost 70% of Russian gas exports went to EU countries and 15% to CIS countries. China accounted for just under 1% of exports. Russia's gas exports last year amounted to $50bn (3% of GDP).
In its February forecast, the Russian Ministry of Finance expects gas exports to grow by a few% over the next few years. A gas pipeline to China was opened in December and deliveries are set to increase gradually.
According to preliminary plans, about 5 bcm of pipeline gas will be delivered to China this year and 10 bcm next year. However, due to the severe coronavirus epidemic in China, Chinese gas demand may remain below expectations.
2.1 ​ ​Russia’s Central Bank’s prudential restrictions slowed retail lending growth and credit market plunged almost 22% in 2019
This year promises to set a record for recent years in terms of growth in unsecured retail lending, The Bell reports.
The Central Bank of Russia (CBR) has been increasingly worried about the ast pace of consumer credit growth, one of the best earners for the banking sector, and has moved to cool the market.
With consumer credit expanding by over 25% a year – far ahead of wage growth – the central bank has been tightening conditions on banks making these loans and the pace of growth of the business ell to 21% in 2019. However, different segments of the business slowed even faster.
12​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com