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. Last Updated: 07/27/2016

Energy Output Will Rise 35% by 2020, Yusufov Forecasts

PARIS -- Energy Minister Igor Yusufov said Tuesday that combined energy production was projected to rise 30 percent to 35 percent between 2001 and 2020 to meet growing demand.

He told energy ministers at an International Energy Agency meeting in Paris he expected oil production to increase to 450 million to 520 million metric tons per year by 2020.

The second-largest oil exporter after Saudi Arabia is reaching out to grab a greater share of the world market beyond its traditional European customers.

"In accordance with the projections, production will increase ... 30 to 35 percent higher than 2001 levels. This is completely in line with the outlook for increasing energy demand," Yusufov said in a translated speech.

By 2020, overall energy demand was projected to grow 25 percent to 30 percent, with consumption of natural gas to rise 15 percent to 20 percent.

Oil output, including gas condensates, rose 9 percent last year to 380 million tons, while exports reached 50 percent of production, a 14 percent rise over 2001, he said.

But while oil output is booming, export capacity remains limited by transport infrastructure, leading to a decision earlier this month by the government to end its opposition to private oil pipeline projects.

"With the goal of maintaining the economic and energy security of Russia, we will strive to diversify our directions of exports of energy resources and technology. This means development of northern, eastern and southern directions of export routes, first and foremost to countries of North America and Northeast Asia," Yusufov said.

Annual gas output, for the first time in four years, rose in 2002, up 2.4 percent to 595 billion cubic meters, with exports accounting for 32 percent of production.

Yusufov said his strategy is aimed at developing nuclear energy, which will raise its stake in power generation to 25 percent over the 20 years from 15 percent in 2000.