Friday, July 20, 2018

"Russia Ships First Yamal LNG Cargoes to China Via Northern Sea Route"

From gCaptain, July 19:
 File Photo: Two Arc7 ice-class LNG carriers load LNG produced at Yamal LNG at the port of Sabetta, Russia. Photo: Novatek
Russian oil and gas company PAO Novatek has shipped its first cargoes of liquified natural gas from the Yamal LNG project to China via the Northern Sea Route.

The cargoes recently arrived at the Chinese port of Jiangsu Rudong on board the icebreaking LNG carriers Vladimir Rusanov and Eduard Toll. A ceremony to mark the ships’ arrival was held Thursday.

After loading the cargoes at Russia’s port of Sabetta, home to the Yamal LNG processing and export plant, the two ships sailed without icebreaker escort through the Northern Sea Route to China in just 19 days, compared to the 35 days it would take to sail the traditional eastern route via the Suez Canal.

Novatek has shipping oil and gas through the Arctic to the Asian-Pacific since 2010.

Yamal LNG is operated a joint-venture comprising Novatek, holding 50.1% in the project, with France’s TOTAL and China’s CNPC and Silk Road Fund as minority partners.

The project will utilize a fleet of 15 Arc7 ice-class LNG carriers which will transport LNG from the port of Sabetta to Asia Pacific and European markets. The vessels are custom-designed to support year-round navigation without the need of icebreaker assistance along westbound navigation routes, and eastbound via the Northern Sea Route during the summer navigation season....MORE
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For China the Yamal LNG may be a literal lifesaver should other sources of natty (and/or coal) not be available. It has been cold up north—Harbin, a city of 10.6 million chilly souls is currently reporting -25°C (-13°F) and power demand  is going through the roof.
By contrast, Minneapolis, where the Super Bowl will be played later today, is a balmy -6°F (-21°C).

Yamal also shipped a couple cargoes to Massachusetts USA during the cold spell fortunately timed with the opening of Yamal in December. At the opening, Putin offered to sell LNG to Saudi Arabia who sent their Energy Minister to the ceremony to represent the kingdom.
It's a pretty big deal.....