Future prospects for Russia’s largest natural gas producer, Gazprom PJSC, are challenging as it works to outpace both foreign sanctions and domestic competition from independent firms.

Unhappy over the Kremlin granting an LNG export license to Russia’s second largest natural gas producer, PAO Novatek, Gazprom told Russian regulator’s the Murmansk liquified natural gas project would reduce domestic gas supplies crucial for power and industry needs.

Despite these objections, the Murmansk export permit was approved and is expected to become effective in November.

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“With LNG exports providing a significant source of income to Russia, the less...