Yamal Peninsula oil and gas shipment routes can now go east and west
Russia’s leading position in the exploration and development of the Arctic’s huge gas deposits will enable it to dramatically increase its liquefied natural gas (LNG) output, confirming Russia’s status as an oil and gas superpower. Russia’s ambitious exploration and development program in the Arctic is a key part of Russia’s plan to become the key gas supplier to China in the future. With Russia’s presence in the Arctic gas sector secured, it is now shifting its focus to development of the oil sector.
Oilprice.com reports that last week Russia’s Gazprom Neft, the country’s third biggest oil company in terms of output and the oil arm of state gas giant Gazprom, shipped its first cargo of oil produced in the Arctic to China via the Northern Sea Route (NSR). This shipment to the East adds to its existing Western exports via the NSR to Europe.
According to Gazprom Neft, it took 47 days to deliver a full cargo of 144,000 tonnes of sweet, light Novy Port oil from the Yamal peninsula developments to the Chinese port of Yantai on the Bohai Sea. The company can now complement its sales of Arctic oil in the European market with sales to the Asia-Pacific markets, allowing Gazprom Neft to offer Novy Port oil with a year-round logistics scheme tailored to prevailing market and climatic conditions.
The first trial voyage along the Northern Sea Route (from the Far-Eastern Russian port of Vladivostok to St Petersburg) by a large-sized and strengthened container ship took place in August 2018. It is now set to become a major transport hub.
Yamal-centred LNG projects can now use the transport route to deliver cargoes both East and West. Russia’s second largest gas producer after Gazprom, Novatek, also has projects on the Yamal Peninsula and has managed to deliver almost all of its Yamal Peninsular (Yamal LNG) projects on budget and on time, notwithstanding the full weight of US sanctions being imposed on Russia in 2014.
Gazprom Neft started exporting oil produced in Russia’s Arctic exploration and development region in 2013, and has delivered at least 40 million tons of oil – including both the ARCO (Prirazlomnoye field) and Novy Port (Novoportovskoye field) blends – to several European countries. The Novy Port oil field is one of the largest oil and gas condensate fields in the Russian Arctic, with at least 250 million tons (around 1.8 billion barrels) of reserves.
Using a now proven system developed alongside Novatek – including the Prirazlomnaya oil production platform, the Arctic Gates oil terminal in the Gulf of Ob, a fleet of reinforced tankers including LNG vessels designed specifically to operate in the Arctic’s icy waters, escort icebreakers and an offshore oil shipment terminal in Murmansk – Gazprom Neft says that it can transport oil year-round (at minimal cost) to Europe.
To the East, there are more natural constraints, as very thick ice makes deliveries outside the summer period extremely difficult for much of the time, and the costs are higher than those to Europe. Prior to last week’s sale (which OilPrice.com reports probably went to state refiner, the China National Chemical Corporation, ChemChina), Novy Port oil had not been exported east to China via the Northern Sea Route. However, the enormous hit to the European refining sector this year caused demand to drop substantially, while demand in China dipped by a much smaller degree and recovered much more quickly.
“Although Gazprom Neft has historically sent ESPO crude to China via the pipeline, this new capability will be useful to other Russian companies for oil as well, not just Novatek for LNG,” a senior oil and gas analyst in Moscow told OilPrice.com last week.
Russia’s number two oil company, Lukoil, also conducted a test crude oil delivery last September, featuring its Varandey blend. This has very similar specifications to the Novy Port blend, with the latter having an API gravity of 35 degrees and a 0.1 per cent sulphur content, whilst Varandey has an API gravity of 35-37 degrees and a sulphur content of around 0.5 per cent.
At the same time as opening up new export routes for its oil, Gazprom Neft is working towards dramatically increasing the oil volumes from the Arctic that it can offer to the East. In 2017, it acquired the development rights to the Tazovskoye and Severo-Samburgskoye fields in the Yamalo-Nenets region, with the subsoil usage rights to the Tazovskoye block running until 2025, and those to the Severo-Samburgskoye block until 2027. The Tazovskoye field is estimated to have recoverable oil reserves of at least 72 million tonnes, condensate reserves of 4.6 million tonnes, and non-associated gas reserves of at elast 183.3 billion cubic metres.
The Severo-Samburgksoye block’s estimated oil reserves are even higher, at 90.5 million tonnes. This followed the commissioning only a year before of the huge Novoportskoye oil and gas field (estimated recoverable reserves of more than 250 million tonnes of crude and condensate, as well as more than 320 billion cubic metres of gas) and the Vostochno-Messoyakhskoye oil and gas field (recoverable reserves of more than 470 million tonnes of oil and gas condensate, and 188 billion cubic metres of gas). LINK
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frack away amerikans—producing inferior quality that costs more to produce than it sells for—perhaps u can poison your water so that coke and Pepsi can enrich themselves selling tap water in bottles….if u colonize Greenland u can bottle their ice
Your cost benefit is not true. Most of the price is tax, so You can level the tax. thats also not the whole price for it, because tfracking also makes jobs and taxpayers.
Russia has a flat income tax rate of 12%. One of the lowest amongst any developed nation. Better luck next time Jens…
Meanwhile Siberia is joining Mother China and u are going to buy Chinese gas.
You guys must be real desperate even at Disney they are laughing at their asses off because your delusional comments…:_)
How did you know we are Legion for we are many?
Thanks for confirmation you serve the devil…
russia will use biological weapons and within 1 month turn china back in the age of marco polo.
China had it better in the age of Marco Polo than 35 years ago, when they were eating roots like NK
Chinese media : We will destroy the US with endless resistance. Seems like China has joined the Axis of Resistance.
The Communist parties official mission was to destroy the US for over a century, maybe change Internet Explorer with another browser?
Russia doesnt have biological weapons. Contrary to the U.S.
Stupid statement.
Great move, the new Arctic ONE BELT.
Russia and China need to exert total control over the melting Arctic sea routes.
We have the International rights to sail the same arctic route as the Russians are doing it.
Yes, Mother China, you own Siberia already
New soros script? Who owes China $2trillion and has $800 billion of trade deficit aba year because of them? Russia or the U.S….:)?
In 2019 total US deficit was around 600 billion.
And this year its $800billion. While Russian is running a trade surplus if $200billion.
Bring your own icebreaker.
UPS, besides a 50 year old rusty icebreaker, they have nada…….but thousands of Warships. Remember, the US is in the destruction business, not in the construction business.
for what purpose – doubt the dysfunctional states of A has any cargoes suitable for the route. no oil or gas in the region. hohohoho. in fact close to nothing anywhere else as well.
No, the northern sea route is Russian territory, just like the northwest passage is Danish/Canadian/US territory. No US freedom of navigation crap. The northern sea route is open for trade, but will need Russian icebreaker to get through. Warships who want to use the northern sea route, have to apply permission 5 weeks in advance. Thats why the US is in rage…….this is not the south China sea
Like I said before,Russia’s the true #1 oil+ gas export Superpower,accept no immitations or cia/kweers!
Its fine with me. I dont get why You are so proud. Who do You sell it to?
My worries is about the climate changes and the spreading out of non pollutive replacements such as wind and solar power.
My worries are your medication or the lack of it…
Which country are you from?
Mental asylum in Danish pastry land, but even that is doubtful as the idiot is a complete fruitcake.
That’s what poor ass nations do, sell their natural resources, while others buy and use these natural resources, make goods and sell them back at a higher price.
Unfortunately for your narrative Russia is not a poor country. Russia is a country that is something your country is not. Debt free. You and your big mouth braggard buddy, plastic zionwhatever, must enjoy embarrassing yourselves.
Better have debt than empty belly.
In case of the U.S. is both nowdays.
Only until the Repo man comes knocking on your door.
That happens only in Russia, in the West they give you a new term.
Russia has neither, it produces more food products than it can use, and belly full of non-GMO good , not contaminated with toxic petro-chemical products, is better than a full GMO, contaminated with large quantities of toxic petro-chemical products. Russia sells the excess, and is custom growing crops by order for other countries Above, being free of the loan payments, and the 30% compounded interest Central Bank charges Governments on loans, that your ass is collateral securing the the loan you pay with taxes, that reduce your net income, Russia cannot be leveraged by it’s debt to force it to bend to the Cabal’s will. Shown by the EU countries, including Germany, despite it’s defiance over Nordstream. The threats, sanctions, tariffs, badmouthing, and determined efforts to bankrupt Germany and with no gas, US expects Germany to buy it’s shitty gas with unreliable delivery, at up to 50% higher cost than Russian gas. That Germany will collect some distribution fees. This clear act of war against an ally by US Government, after US sanctions against Russia. cost EU countries billions of Eurobucks a year in lost trade. Permanent losses for the the honor of standing with it’s ally. With no compensation. Then US breaking JCPOA, forcing EU countries to break contracts, stop production in Iran, again no compensation. When EU countries refused to comply, they were punished severely. Their Central Bank debt forced the countries to kneel down, and suck Rothschild dick. What kind of Government treats it’s allies in this manner ? NATO countries will fight next to US military, that debt keeps these countries sucking Rothschild dick perpetually. Think these countries are going to fight the way they have in the past after that ? They’ll fight just enough to look busy, and to keep their forces protected. Regardless Russia, and it’s allies will prevail. Germany is there to remind you that a larger military, even the overwhelmingly larger military of the allies had against Germany’s tiny military, 90% of it horse drawn, at the start of the war. Germany also there to remind you that it’s military taught Russia how to fight. Your arrogance doesn’t allow you to see Russia learned that lesson well, and any student would, it’s expanded, and improved it’s education further. Finally both Germans, and Russians are Northmen their reputation is legend. Russians being further Northmen are tougher, stronger. In fact the Germans are the wimps of the Northmen. Consider the ass whuppin’ the dinky German military handed a military as the size of of the allied forces opposing it. For a total of six years, fighting every step of the way back inside Germanys borders. No one has ever called the Germans a joke. The size disparity between the future belligerent’s, isn’t even close, to that war. Russia’s military technology, and capabilities are advanced decades ahead of the West, possesses weapons systems the West has no analog. In short Russia has the West outgunned. By their nature Russians are tougher, stronger just to survive the weather. But the Bear is soft,too soft, opponents mistake this for weakness. There’s a reason everyone is advised “Don’t poke the Bear.” When the Bear hits his limit on touchy/feely you’re not going to see it coming. Provoking war while destroying the country, and population that serves the Zionist Khazar criminal Banking Cabal, and protects the pretenders squatting on stolen land terrorizing its neighbors, practicing genocide on the people the land was stolen from, directing the Cabal’s bully puppet to continue the same behavior that got you Zionist Khazars run out of your own country, and stripped of your religion. Been packing that grudge, dragging the baggage along for centuries. You’ve made yourselves the most hated country on earth. until recently. US Government has taken that place as the most hated country on earth. Is also the biggest terrorist organization, and supporter of terrorism in the world. US Government committed the two biggest acts of terror in world history. Israel is merely the regional terrorist organization, and supporter of terrorism. Both attempt to project this into its enemies, quite unsuccessfully. Labeling a country that hasn’t attacked another country since since 1775 a “terrorist” organization, and a bunch of other of your crimes against humanity is simply not believable. US Government has picked up this lame lame ass habit from you. Your wealth doesn’t make you superior, or smarter. You’ve had to resort to PsyOps, indoctrination to dumb us down
Is that why the U.S. is the number one oil and gas producer?;) Your handlers wont be happy…:)
Producer yes, exporter no :) that should be basic.
They are also the biggest exporters currently.
big gas station
nothing else
nah they eat better and sleep better and obesity is as rare as an intelligent american.
Sounds like the U.S.
Good job Comrades. CIA trolls and hasbarats are crying and raging :)
Soon they will be suiciding in despair!!
I am afraid, that russian will cause dozens of ecological catastrophies and totally destroy this area.
time will tell but since it’s gas it goes right into the atmosphere.
Americants*
the choke point will be the baring strait.