ONGC OVL invited to join Yamal LNG projects by Russia

ONGC OVL invited to join Yamal LNG projects by Russia

Russia is also mulling hefty tax breaks to the investors for the production of LNG in the northern Yamal projects and the country's concerned ministries have been ordered to submit draft laws by the end of this year.

The Russian government instructed the Finance, Economic Development and Energy ministries to prepare draft laws to introduce tax privileges for gas extracted for further liquefaction before December 31, according to a cabinet resolution posted on the government website.

A zero mineral extraction tax regime on gas produced on the Yamal Peninsula for further liquefaction has been proposed by the government provided the development of field within the 12-year timeframe beginning from the LNG production.

Taxes will not be applicable till the accumulated volume of gas production reaches 250 billion cubic meters.

Similar tax breaks have been proposed on gas condensate until their volume reaches 20 million metric tonnes in the process of LNG production.