Delays to several large liquefied natural gas (LNG) projects have been a major contributor to a $15bn drop in Russia’s upstream investments, according to Rystad Energy research.
Upstream investments in Russia were expected to approach $50bn in 2022 but its research indicates they will sink to $35bn in 2022, while remaining subdued until at least 2025.
Investments in Russia’s upstream sector totalled $45bn last year, rebounding from Covid-19-induced lows of $40bn in 2020. But as Russia becomes increasingly shut off from the global energy market, investments have sunk well below levels seen in the pandemic-affected years.
“A significant factor limiting investments is the delay of several LNG projects, which have now been pushed out five or six years into the future due to technological and funding constraints as Western partners pull out,” according to a statement.
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