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1 1 (March 23, 2022)

handle is hein.crs/govefls0001 and id is 1 raw text is: Congressional SResearch Service The Role of Russian Natural Gas March 23, 2022 Russian natural gas exports have been and continue to be of interest to Congress, whether regarding the Nord Stream 2 and TurkStream natural gas pipelines, European energy security, or geopolitical influences. Particularly for Europe, Russia's natural gas industry holds greater geopolitical significance than Russian oil. Most of Russia's natural gas exports to Europe, its largest market, are by pipeline, which limits Europe's supply flexibility. Some European countries are wholly reliant on Russian natural gas imports, and Russia has appeared to adjust its natural gas prices and, occasionally, supplies on the basis of its relationship with consuming countries and as leverage in contract negotiations. In recent years, Russia has widened the market for its natural gas exports, primarily by liquefied natural gas (LNG). Russia has looked to Asia, particularly China, for future natural gas exports. In 2020, 17% of Russia's natural gas exports were LNG transported by ships and 83% were non-LNG transported by pipelines. In 2020, 78% of Russian natural gas exports went to Europe, including Turkey, 11% went to Asia, and 11% went elsewhere. Energy is the most important sector in Russia's economy, and natural gas is a key resource. Russia is the second largest consumer and producer of natural gas in the world, and the top reserve holder and exporter. Natural gas accounts for more than half of Russia's primary energy consumption and exports are a major source of foreign currency and revenues. Oil and natural gas accounted for approximately 36% of Russia's government revenue in 2021. Natural gas made up about 13 % of Russia's total exports (compared to 37% for oil). Gazprom, Russia's state-owned natural gas company, is the largest publicly listed natural gas company in the world by revenue. Russia is a founding member of the Gas Exporting Countries Forum (GECF), a cartel-like organization of natural gas-producing countries. Natural gas is more a regional commodity than a global one like oil, meaning most natural gas is consumed in the country that produces it or in nearby countries. Major natural gas exporters, like Russia, can have a greater influence in markets, like Europe, where Russia is the dominant supplier, in part because pipelines more closely link producers and consumers. Natural gas is also expensive to transport, whether by pipeline or as LNG. Pipelines must be pressurized, while to liquefy natural gas means dropping its temperature to -260°F, which contracts the volume by 600 times, making it economical to transport by ship. In 2020, Russia supplied about 44% of the EU's natural gas consumption, with Germany and Italy being the top two recipients. Approximately one third of the EU members (Austria, Bulgaria, Estonia, Finland, Congressional Research Service https://crsreports.congress.gov IN11900 CRS INSIGHT Prepared for Members and Committees of Congress

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