Russia's ambitious plan to triple its annual liquefied natural gas (LNG) production has been significantly delayed due to international sanctions, Deputy Prime Minister Alexander Novak announced. The country's target to reach 100 million tons of LNG output per year will now face a postponement of several years, though no specific revised timeline was provided.

Production Targets and Market Ambitions

Russia had originally set an aggressive goal to produce 100 million tons of super-chilled fuel by 2030, aiming to capture a substantial 20% share of the global LNG market. This ambitious target represented a significant expansion from current production levels and would have positioned Russia as a dominant player in the global LNG trade.

Sanctions Impact on Russian LNG Sector

Western nations, including the United States, have implemented comprehensive energy sanctions targeting Russian LNG operations as part of efforts to reduce the Kremlin's revenues funding the war in Ukraine. The sanctions have created significant operational and financial challenges for Russian energy projects.

The US has specifically blacklisted all current and future Russian liquefied-gas projects, with the notable exception of the Yamal LNG facility led by Novatek PJSC. Additionally, sanctions have targeted the fleet responsible for shipping the super-chilled fuel to international markets, creating logistical complications for Russian LNG exports.

Current Production and Market Adaptation

Despite the sanctions pressure, Russia continues to maintain significant LNG production levels. According to data from the Federal Statistical Service reported by Interfax, Russia produced nearly 30 million tons of LNG in the first 11 months of 2025.

China Emerges as Key Market

The sanctions have prompted Russia to redirect its LNG exports toward markets that do not recognize western restrictions. China has emerged as a crucial destination for Russian LNG cargoes, providing an alternative outlet for Russian production.

This strategic pivot has yielded significant results, with Russia achieving a notable milestone by becoming the single largest LNG supplier to China, overtaking Australia in this position. This development demonstrates Russia's ability to adapt its export strategy despite international restrictions.

The delay in Russia's LNG expansion plans represents a significant shift in global energy market dynamics, potentially affecting long-term supply projections and competitive positioning in the international LNG trade.

Petronet LNG , an Indian LNG importer, may be monitoring these developments closely as they could impact global LNG supply and pricing trends.

Petronet LNG has received a Goods and Services Tax (GST) demand order worth ₹6.69 crores from tax authorities in New Delhi, the company disclosed in a regulatory filing on December 11, 2025. The demand relates to alleged tax violations during the financial year 2021-22.

GST Demand Details

The Department of Trade and Taxes, Office of the Assistant Commissioner/GSTO, New Delhi issued the order under Section 73 of the Goods and Services Tax Act, 2017. The demand breakdown includes multiple components beyond the base tax amount.

Alleged Violations

The tax authorities have cited two primary violations in their demand order:

• Excess Claim of Input Tax Credit (ITC): The company allegedly claimed ITC beyond permissible limits
• Under-declaration of Ineligible ITC: Authorities claim the company failed to properly declare certain ineligible ITC amounts

These allegations pertain to the company's GST compliance during FY2021-22, suggesting potential discrepancies in tax filings from that period.

Company's Response and Legal Strategy

Petronet LNG has strongly disputed the GST demand order, maintaining that the allegations are unfounded. The company stated that based on its assessment of facts and prevailing law, the GST demand amount, interest, and penalties levied are unjustified.

The energy infrastructure company plans to challenge the order through appropriate legal channels in consultation with its advisors. This approach indicates the company's confidence in its tax compliance procedures and its willingness to defend its position through the legal system.

Financial Impact Assessment

Despite the significant demand amount, Petronet LNG has assessed that there will be no likely material impact on the company's financial or operational activities due to this order. This assessment suggests the company believes it has strong grounds to successfully contest the demand.

The company's confidence in avoiding material impact likely stems from its evaluation of the legal merits of the case and its financial capacity to handle such regulatory challenges while maintaining normal business operations.