Al-Falih to inaugurate Russia’s new LNG project

Saudi energy minister Khalid Al-Falih will travel to Russia for the opening of the Yamal liquefied natural gas (LNG) project, Russian energy minister Alexander Novak said on Wednesday, cited by Reuters.

The two ministers will visit the new LNG project this week.

The Yamal LNG project, managed by Russia’s largest private sector natural gas producer NOVATEK, is expected to produce about 17.5 million tons annually.

In July, Novak said that cooperation with Saudi Arabia in the field of energy is very important and would deepen if Riyadh accepted an offer to participate in a gas project in Russia's Arctic region.

Commenting on the recent agreement between OPEC and non-member oil producers to extend their ongoing supply cut pact, Novak said it was too early to talk about a possible exit, and any withdrawal from the deal must be gradual.

The process of exiting the agreement may last for three to six months, and depends on the recovery of the global oil market and the demand for crude, the Russian minister said during his visit to Iraq.

OPEC and other major oil producers, led by Russia, last week agreed to extend an agreement cutting their total oil output by 1.8 million barrels per day until the end of next year.