Russian LNG beats global competitors


The Northern Sea Route has opened up new opportunities for the development of the LNG industry in Russia, writes the American Internet publication OilPrice.


There is currently an oversupply of LNG in the world, driven by the raging COVID-19 pandemic that has caused a global economic crisis and collapse of demand for raw materials. However, the Russian company Novatek intends to triple the volume of LNG produced by 2030, bringing them to 70 million tons per year.

The Russian company has a very serious ally and this is not Russian President Vladimir Putin, as many might think, but the Northern Sea Route. According to independent analysts of the energy market, in September 2020, the Yamal LNG plant sent a record 700 thousand tons of products to consumers along the Northern Sea Route. And, most likely, these volumes will continue to increase, because the Northern Sea Route, every year, more and more freed from the ice cover and becomes available for navigation.

In the first half of 2020, 24 flights were made along the Northern Sea Route, which has a length of 935 thousand km. Moreover, a significant part of the cargo fell on oil and LNG. 257 flights were carried out by Novatek, and 228 went to the world's only oil loading terminal in fresh waters beyond the Arctic Circle - the Arctic Gate. It has been operating since 2016 and is owned by Gazprom Neft PJSC.

Climatic changes that caused the melting of ice in the Arctic and permafrost are of great concern to environmentalists. However, this opens up great business opportunities. Novatek will be able to deliver LNG by the shortest route to consumers in Asia and Europe without the help of icebreakers. And this will no doubt have a positive impact on prices.

The largest banks on the planet, insurance, investment, mining and energy companies, as well as various funds, are closely following the development of events and are considering investing in the Russian Arctic. However, some businessmen did not wait and promised to allocate a total of $ 2 billion for the development of Arctic LNG-9,5. This plant will cost $ 21 billion and will produce 20 million tons of LNG per year. It should start working in 2023, and will reach full capacity in 2026. Novatek has already ordered 14 ice-class LNG carriers.

Russia has very ambitious plans. Moscow is going to get 25% of the world LNG market in the next five years. In 2019, Russia exported 16 million tons of LNG to the European Union, ranking second after Qatar. At the same time, the United States exported only 12 million tons to the European Union.

The prime cost of Russian LNG is low, therefore the price is low. Thanks to this, Russia is defeating many of its global competitors, and importing countries are happy to buy LNG from Moscow.
  • Photos used: JoachimKohler-HB / wikimedia.org
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  1. gorenina91 Offline gorenina91
    gorenina91 (Irina) 15 October 2020 19: 12
    -6
    The largest banks on the planet, insurance, investment, mining and energy companies, as well as various funds, are closely following the development of events and are considering investing in the Russian Arctic.

    - Personally, I have already written many times about the so-called NOVATEK, which, due to its adventurousness, fraud, the scale of its scams ... - how much better than Gazprom ... - Gazprom is not suitable for NOVATEK in this matter ...

    The largest banks on the planet, insurance, investment, mining and energy companies, as well as various funds, are closely following the development of events and are considering investing in the Russian Arctic.

    -Everything is correct ... -Only who will answer a very simple and tiny question .... - and whose "Russian Arctic" today ... -who owns the "portfolios"; who are the real owners of the Russian North ??? -Yes, and some of the Russian tycoons, swindlers have their share of the co-owner ... -And who is the real owner ??? - Personally, I'm just tired of doing repetitions on this topic ...

    However, some businessmen did not wait and promised to allocate a total of $ 2 billion for the development of Arctic LNG-9,5. This plant will cost $ 21 billion and will produce 20 million tons of LNG per year.

    - $ 9,5 billion ??? - This is the sum of the Russian co-founders, or what ??? -Well ??? -Even, "if the chef doesn't lie to us" ... Who will replenish the amount up to $ 21 billion ??? - And this is more than half ... allegedly the cost of the plant ...

    It should start working in 2023, and will reach full capacity in 2026.

    -Uuu ... -How fast ... -Yes, by this time China will fill up the whole world with its LNG and become a world monopolist ... -And valiant NOVATEK will appropriate the part of the money that is due to him ... . and as befits a major swindler ... - dissolve without a trace ...

    Novatek has already ordered 14 ice-class LNG carriers.

    -Wow ... -this is the scope ... -And who ordered it ??? - On the "Star"; from North Korea; in China ??? - But by the way ... what's the difference ... - this money will simply be sawn and mastered by NOVATEK ... - only they saw it ...
    1. Fourth Horseman Offline Fourth Horseman
      Fourth Horseman (Fourth Horseman) 15 October 2020 20: 00
      0
      Personally, I have already written many times about the so-called NOVATEK, which, due to its adventurousness, fraud, the scale of its scams ... - how much better than Gazprom ... - Gazprom is not suitable for NOVATEK in this matter

      And you have proofs, documents, and can you show them? Answer for your words.
      Or will you continue to drive bullshit?
      1. Oyo Sarkazmi Offline Oyo Sarkazmi
        Oyo Sarkazmi (Oyo Sarkazmi) 16 October 2020 14: 11
        0
        What are you doing to the poor fighter of the Internet front. Few sergeant slaps in the face for a shift, so you are still demanding evidence. You need to be kinder to unfree workers ...
  2. The comment was deleted.
  3. Semyon Semyonov_2 (Semyon Semyonov) 15 October 2020 21: 48
    -1
    American Americans won't survive it.)
  4. boriz Offline boriz
    boriz (boriz) 15 October 2020 23: 20
    -1
    The prime cost of Russian LNG is low, therefore the price is low.

    Here it was necessary to expand, clarify.
    Otherwise, now they will start talking about the meager wages, about the merciless exploitation of the people ...
    The low cost of gas in Yamal is explained by the geographical location of Yamal and, as a result, by its climate. If we compare the cost of liquefying gas on the coast of the Gulf of Mexico (well, or in Algeria, Qatar), the difference reaches 30%. Simply due to the fact that the equipment of one (of the three) liquefaction stages does not work at all, because it is needed at a gas and ambient temperature above 10 degrees Celsius. And when this sometimes happens, for cooling, not high-molecular gas fractions in the compressor are used, but ordinary water from the mouth of the Ob. Cheap and cheerful.
    And our competitors cannot get away from this. For, as Bismarck said, geography is destiny.
  5. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 16 October 2020 08: 43
    +1
    And next to it is an article that the Arabs are pushing us ...

    Some in the forest, some for firewood ...
    1. Oyo Sarkazmi Offline Oyo Sarkazmi
      Oyo Sarkazmi (Oyo Sarkazmi) 16 October 2020 14: 12
      -1
      To whom they pay for what they write. Dialectic-sss ...