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Russia’s Yamal LNG Production May Need $27 Billion of Investment

Russia’s plans to produce liquefied natural gas on the Yamal Peninsula in the Arctic will need more than 850 billion rubles ($27 billion) of investment, said the Finance Ministry.

As an incentive, Russia may set the mineral extraction tax at a zero rate for natural gas that is produced in the region and used for LNG, according to a proposal published on the ministry’s website today. The tax break would begin when LNG production starts and last until output reaches 250 billion cubic meters or for 12 years, the ministry said.

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