Advances in Engineering Research, volume 213

Proceedings of the International Scientific and Practical Conference "Young Engineers of the
Fuel and Energy Complex: Developing the Energy Agenda of the Future" (EAF 2021)

Comparative Analysis of Liquefied Natural Gas with

Renewable Energy Sources
Roman Tsaregorodtsev1,*
1
Gazprom LNG Portovaya, Russian Federation
*
Corresponding author. Email: info.romana@yandex.ru

ABSTRACT
This work is to determine the leading position of liquefied natural gas by comparative analysis with renewable energy
sources as competing energy industries with a development perspective until 2035. Hypothesizing an unknown energy
source capable of replacing traditional energy.

Keywords: World energy, International energy agency, International space station, Ministry of energy of
the Russian Federation, Renewable energy sources, Liquefied natural gas, Gas transmission system,
Newest Energy.

“cutting-edge energy”, with an overview of international

1. INTRODUCTION
space exploration programs for 2021.
“In recent years, we have seen renewable energy
sources steadily overtaking conventional energy sources. 3. RESULTS AND DISCUSSION
Every year, hundreds of gigawatts of renewables are
built around the world. For five years in a row, green As you know, non-renewable energy sources include
generation has surpassed coal, gas and nuclear in the (oil, gas, coal), and renewable energy sources (RES) –
volume of inputs, and global investments in RES solar energy, wind energy, water flow energy, the
annually exceed $300 billion” [1]. potential energy of waves, geothermal energy of the
earth, bioenergy and biofuels.
In connection with active growth of renewable
energy popularity the question arises: “Will this energy According to the International Energy Agency (IEA),
replace traditional one? How long will it take? Are RES the demand for gas from the power generation sector is
really more environmentally friendly and cost-effective facing difficult conditions in 2020. Gas consumption for
than LNG?” These questions indicate that the topic is power generation, despite favorable fuel switching
relevant in today's realities. dynamics in North America and Europe, was the hardest
hit segment, accounting for an estimated 45 % of the
As a result of the study it is planned to structure the total annual decline. Electricity demand is expected to be
main positions of the research subjects: LNG and RES. limited in 2021 due to strong competition from increased
renewable capacity and lower competitiveness relative
2. METHODS to coal as natural gas prices recover from the lows of
2020. Thus, this forecast assumes a 1.2 % increase in
Criteria such as the possibility of energy storage, natural gas use for electricity generation in 2021, not
environmentally friendly production, the use and enough to offset a projected 2.1 % decline from 2020.
disposal of items under study, government support and
investment in renewable energy sources and in LNG To date, we have seen the natural gas market move
were selected as the main study items. Overview of rapidly from regional integration to embedding into
companies working in the field of RES and LNG more globalized, interconnected markets. As the
implementation. Identification of a strategy for the LNG International Energy Agency reports, it is liquefied
industry in the “giant country” of the gas reserve. natural gas that provides this global supply of natural
Considering outer space as a potential source of gas, plays an adaptive role in the event of a drop in
global demand due to recent pandemic conditions.

Copyright © 2022 The Authors. Published by Atlantis Press International B.V.

This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 224
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However, there are likely consequences associated with power plants not less than 5 MW, and small hydro
the danger of supply exceeding demand on the natural power plants within the range of 5 to 25 MW.
gas market. Despite these ambiguous problems, the
All this has been developed and approved by the
agency's experts predict a decline in the leadership of
long-term program for the development of LNG
fossil fuels. For example, coal will surrender its position
production (Order No.640-p of March 16, 2021).
by 2025, they predict.
I considered the prospects of LNG development using
“Renewable generation will grow by nearly 50 the example of Russia as the most significant gas
percent over the next five years, its share of electricity supplier in the world. Our competitors are only the “big
generation will reach one-third. This will end the fifty- three” consisting of Qatar, Australia and the United
year role of coal as the main source of electricity,” States.
broadcasts Fatih Birol, executive director of the IEA.
As far as the support for LNG facilities is concerned,
State support affects the introduction of RES. Russia's tactics is also aimed at the most powerful
Governments in different regions have special programs growth, which is inherent in the long-term (up to 2035)
for companies that use energy from renewable sources. program of LNG production development. The volume
Such programs include grants, preferential taxation for of LNG production will increase and the use of Russian
responsible companies. technologies will expand:
In addition to the above, it is important to note that • equipment for gas liquefaction and purification,
the use of energy, including renewable energy sources,
• special compressors,
involves the need to accumulate and store energy
reserves. This is for cases of sudden stoppage of • cryogenic units,
generation (natural disasters, man-made problems, etc.)
• autonomous LNG power complexes,
and for access to globalized markets. For these tasks it is
necessary to create equipment (accumulators, storages) – • integrated control systems.
i.e. infrastructure for accumulation and storage of
The RF Government Decree No. 1523-r, dated
electric power, or to “back up” with the help of reserve
June 9, 2020, Moscow, approving the RF energy
capacities of traditional power generation.
strategy for the period up to 2035 [2] states:
Nevertheless, there are problems of RES utilization.
The set of key measures ensuring the solution of the
This is especially true for solar panels, wind turbines,
problem of development of production and consumption
and storage units, which must be disposed of after their
of liquefied natural gas, entering of the Russian
lifetime. Thus, the real cost of renewable energy sources
Federation in the medium term among the world leaders
should include the cost of recycling and disposal of
in its production and export includes the provision of
waste equipment. It is worth noting that this usually
legislative and regulatory conditions, including measures
turns out to be more resource-consuming than the
of tax and customs-tariff incentives, economically
extraction and manufacture of these materials. This
effective and balanced development of production,
problem must be taken into account when analyzing the
transportation, storage, sale and use of liquefied natural
real cost.
gas in the general development of the gas industry.
Let's consider briefly the ecotoxicity of seemingly Work is currently underway to design large production
environmentally sparing RES mining. Not only steel, facilities in the Arctic zone of the Russian Federation on
concrete and other industrial materials, but also toxic the Yamal Peninsula and the Gydan Peninsula. The
neodymium and dysprosium are used in the Arctic projects will be implemented using gravity type
manufacturing process of turbines. Solar panels contain platforms manufactured at the Murmansk shipyard.
lead, cadmium, chromium and other toxic metals that are Outside the Arctic zone of the Russian Federation it is
released when the panels are broken during planned to implement major projects under production
transportation or disposal. Fauna also suffers: wind sharing agreements – construction of the third
turbines and the extreme temperatures of GSP stations technological line of the large-capacity liquefied natural
near bird habitats kill large numbers of birds. gas production plant on Sakhalin Island and “Far Eastern
LNG”, as well as an investment project of the natural
An analysis of legislative support plays an important
gas processing and liquefaction complex near the
role in considering the prospects of this or that IE. Thus,
settlement of Ust-Luga.
according to the Government Decree No. 449 dated May
28, 2013, the following RES will be supported by the It is also planned to unlock the resource potential not
state in the wholesale market: SES (solar power plants), only of Yamal, Gydan, Vladivostok and the north of
WES (wind power plants) and SHPP (small Krasnoyarsk Krai, but also the Arctic shelf, which will
hydroelectric power plants). In addition, supported attract new investors and increase Russian LNG exports.
capacity ranges have been determined: solar and wind

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2018 Russian Federation: tax benefits and preferences for

[ПРО к 2024 ships registered in this register.
ЦЕНТ] [ПРО 2018
ЦЕНТ]
к 2024
к 2035 к 2035
[ПРО
ЦЕНТ]

Diagram 1 Volume of liquefied natural gas production

in Russia, million tons.
Figure 1 Computer model of LNG carriers.
An indicator of our ability to respond flexibly to the
dynamics of the global gas market is our position as one As of 2020, investment in renewable energy will be
of the top three global producers and exporters of $281 million, second only to the oil and gas sector at
liquefied natural gas: $322 million. Moreover, investment in oil and gas will
slow down much more than in renewable energy in
2018 – 18.9 million tons; 2020. Current projections suggest that green energy will
By 2024 – 46–65 million tons; become the largest energy sector in terms of investment
as early as 2025 to 2030 (Figure 2).
By 2035 – 80–140 million tons.

2018 к 2024
4% 17%

2018

к 2035 к 2024
79% к 2035

Figure 2 Windmills and solar panels.

Diagram 2 Volume of methane consumption in
transport, billion cubic meters. Let's take a look at several notable Russian and
foreign companies involved in renewable energy.
These are the methane consumption figures for
transport: 1. RusHydro (HYDR). It is a large energy company,
specializing in hydro power (80 % of its assets). Hydro
2018 – 0.68 billion cubic metres;
power plants provide the most part of generating
2.7 billion cubic metres by 2024; capacities (30,8 GW). The total number of capacities is
38 GW. RusHydro has a fairly reliable investment
10 to 13 billion cubic metres by 2035.
portfolio. For example, the analytical indicator has
The Russian energy industry plans to increase the grown 1.34 times since 2015, dividends have more than
efficiency of the entire system, to increase LNG doubled, and the company's solvency has grown from
production to 80–140 million tons per year by 2035. 1.48 to 2.4.
By 2040 more than 50 % of natural gas trade will be 2. Enel Russia (ENRU). After selling Reftenskaya
in liquefied form. Due to the particular attractiveness of GRES (3.8 GW) in 2019, the company is building wind
the liquefied gas market, Russia intends to occupy a farms with a total capacity of 362 MW. Today the
decent niche in it and claim the level of LNG production construction of Azovskaya Wind Power Plant, which
in these volumes, – says the Russian Minister of Energy intends to provide “green energy” to Rostov Region, is
Alexander Novak in the journal Energy Policy [3]. nearing completion. By the end of 2021 Enel Russia
plans to complete construction of the largest wind farm,
On April 20, 2021 the State Duma passed in the first
the Kola Wind Farm (201 MW) above the Arctic Circle.
reading the bill that allows the registration in the RMRS
And by 2022 the company plans to have at least 40 % of
(Russian International Register of Ships) of floating
all renewable energy sources.
storage tanks of LNG (Figure 1). It is also proposed to
make changes in the Merchant Shipping Code of the

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3. 10 years ago Lukoil (LKOH) decided to start speed, its duration varies from 260 to 150 days, which
investing into renewable energy sources, namely – into was used by scientists.
hydro power plants in the Republic of Adygea, in
Krasnodar region with total capacity of 297 MW. In
2013 the Company purchased wind farms in Romania
and Bulgaria (208 MW).
4. Gazprom Neft (SIBN) invested in wind farms and
geothermal systems in Serbia.
5. Tatneft (TATN) and Rosneft (ROSN) also have
similar projects.
6. Shell (RDS A) is one of the leaders actively
investing in environmental projects. Among them: the
energy storage company Sonnen (Germany), the Figure 3 NASA Ingenuity drone helicopter.
American solar power producer Silicon Ranch and In 2021, Russia resumes lunar exploration. It is
several wind power projects in Europe and the USA. planned to create a vehicle simulating human
7. British Petroleum (BP) is a renewable energy movements to collect soil samples. Ahead, we will get
investor. Established with Bunge a company called BP acquainted with new chemical substances, and, as a
Bunge Bioenergia. The company is engaged in consequence, the “Table of cosmic elements”. Probably,
bioenergy and production of ethanol from sugar cane. a kind of energy with unexpected properties, units and
The company has a stake in wind power generation in parameters will be discovered there. One more
seven U.S. states, including Hawaii. British Petroleum suggestion. Possibly some “Energy traps” will be
has increased its stake in Lightsource BP to 50 %. They invented with which earthlings will be able to transport
are involved in “solar” projects and plan to deploy 10 this resource to their planet. These conclusions suggest
GW of capacity by 2023. that the energy of the future is not on Earth (Figure 4).
8. Total (TOT). The French giant plans to increase its
RES capacity to 25 GW by 2025 and significantly
expand its share of its portfolio by 2035. Through its
subsidiaries Total Solar, Total Eren, Total Quadran and
SunPower, Total is developing photovoltaic solar, wind,
bio, hydro power.
9. Chevron (CVX). This U.S. company has already
acquired 65 MW of wind power capacity in West Texas
and 29 MW of solar power in Southern California. It is
partnering with Pacific Ethanol, Waste Management and
CalBio on renewable transportation fuels.
10. As you can see, the oil and gas giants are turning
into major energy companies with a huge share of Figure 4 The newest energy.
renewables in their assets. These are significant players
in the green energy market. 4. CONCLUSION
The year 2021 marked the beginning of active Despite the fact that interested countries are actively
exploration of deep space. This spring, one after another, financing the development and implementation of
spacecraft from the UAE, China and the United States renewable energy sources, they have a number of
reached Mars. April 19, 2021 Ingenuity drone helicopter problems: production, operation, storage and
of the same NASA (Figure 3), made history by making environmental friendliness of disposal. In turn, the
the first flight to Mars. increasing share of LNG development in the world
And on April 20, 2021, NASA's Perseverance market could compete significantly with renewables
planetary rover managed to pick up a sample of the over the next 15 years.
Martian atmosphere for the first time, from which it was Studies have shown that LNG is an effective solution
able to isolate oxygen. “Devices like this may one day to the problem of choosing a reserve fuel. LNG is
provide astronauts with breathable air,” experts said. particularly relevant for enterprises where natural gas is
Mars interested astronauts for a reason. In July 2020, the main fuel, which will avoid stopping work processes
Earth and Mars converged, an event that happens about during repairs and commissioning. With such qualities
once every 26 months. Depending on the initial flight as environmental friendliness, safety, reliability and high

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energy efficiency of the fuel, it should be noted that most environmentally friendly fuels.” DOI:
storage is also highly economical and compact. https://minenergo.gov.ru/en/node/16992
Thus, in the medium term, LNG is undoubtedly the [4] The Energy Strategy of the Russian Federation to
most realistic to hold the leading position. Nevertheless, 2035 DOI: https://minenergo.gov.ru/ node/1026
in the long term, RES can be a serious competitor to
LNG. [5] Marketing strategy of the Gazrom Group DOI:
https://www.gazprom.ru/about/ marketing/lng
It is too early to put an end to the priority of this or
that type of energy. We should not forget that new [6] IEA (2021), Gas Market Report, 2-2021quart, IEA,
cosmic spaces are being explored, robotic expeditions to Paris DOI: https://www.iea.org/reports/gas-market-
the surface of the Moon, Mars, asteroids are underway. report-q2-2021.
And it is possible that scientists will find a new element
[7] Natural gas security-Energy security-IEA Natural
unknown to us, a potential source of "Newest Energy",
which will take its long vacant place in the Mendeleev's gas security.
chemical table, becoming the absolute leader in this field. [8] Green energy investments (tinkoff.ru) How to make
money on green energy. Overview of the renewable
ACKNOWLEDGMENTS energy sector.
I express my gratitude to the management of [9] Going into open LNG space: Russia changes its gas
St. Petersburg Electrotechnical University “LETI” for strategy DOI: https://baltnews.lt/ekonomika_
the opportunity to make a presentation at the EAF-2021 online_novosti/20210306/1020626741/Ukhod-v-
conference, as well as for the fact that my article was otkrytyy-SPG-kosmos-Rossiya-menyaet-gazovuyu-
selected by the editorial board for publication in an strategiyu.html
English-language collection following the conference at
[10] Mars-shooting: three missions will arrive at the red
the Atlantis Press publishing house (part of Springer)
with subsequent indexing in the Web of Science: planet in February 2021, a Russian newspaper
Proceedings of the International Scientific and Practical (rg.ru)
Conference “Young Engineers of the Fuel and Energy [11] Chapter 5. The authors L.A. Sekletov, L.L.
Complex: Developing the Energy Agenda of the Future” Strelnikova's Book “Earth – minded planet” part 2
(EAF 2021). of the Series “encyclopedia of the New Era,” “the
Land of the Golden Race”, Vol. 1 Pp. 190-191.
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