The Ministry of Finance proposed to extend the zero rate of MET in gas production in Yamal and Gydan
The Ministry of Finance of Russia proposed to extend the zero tax rate on gas production (MET) in the fields of Yamal and Gydan. We are talking about the production of gas, which is used to produce liquefied natural gas, ammonia or hydrogen.
The Ministry of Finance of Russia proposed to extend the zero tax rate on gas production (MET) in the fields of Yamal and Gydan. We are talking about the production of gas, which is used to produce liquefied natural gas, ammonia or hydrogen. The Ministry proposed to conclude an investment agreement. This was reported by “Interfax” with reference to a source familiar with the initiative.
Yamal and Gydan have the largest reserves of natural gas and liquid hydrocarbons. They act as a resource base for Novatek’s Yamal LNG and Arctic LNG-2 projects. In 2023, Russia adopted a law on zero MET on Yamal gas for ammonia and hydrogen projects. However, the benefit ceases to apply when the accumulated production volume of 250 billion cubic meters is reached or after 12 years.
The Ministry of Finance proposes to conclude an investment agreement on financing the obligations of the Kamchatka Territory for the construction of LNG regasification facilities in the region, as well as for the development of LNG, ammonia or hydrogen projects. According to Interfax, the project is the most relevant for the Yamal LNG project. In 2026, its accumulated gas production may reach 250-300 billion cubic meters of gas, which will lead to the cancellation of the benefits.
