Monday, April 22, 2019

"Russia seeks Chinese support in developing Arctic shipping routes, promising long-term gas supplies in return"

It appears the stories of a cash crunch for projects in the Russian far north were accurate.

From the South China Morning Post, April 18:

Ambassador to China invites Beijing to help develop ports and other facilities as Russia seeks to boost sea traffic in region
Russia wants to team up with China to build an Arctic shipping route, its ambassador to Beijing has said.

Moscow recently set out an ambitious programme to build new ports and other infrastructure facilities to increase cargo shipments across the Arctic, also known as the Northern Sea Route.
Russian ambassador Andrey Denisov told the South China Morning Post that negotiations over the supply of Russian gas to China through a route known as Power of Siberia Two were at an advanced stage.

“Almost everything has been completed so far but there is only one gap, which is the price,” Denisov said. “Price is the final detail but a crucial one and it’s quite natural in the discussion between seller and buyer – the seller wants the price as high as possible but the buyer wants to pay as little as possible.”
Denisov said the two sides were accelerating the pace of the negotiations and he was optimistic they would reach a deal. “China as a buyer needs gas and a reliable long-term source. Russia is definitely that kind of source,” he said.

Work on Power of Siberia One, also known as the “Eastern Route”, is expected to finish on December 10 and is expected to transfer 38 billion cubic meters of gas to China every year.

Any deal concerning Power of Siberia 2, or the “Western Route”, could further strengthen the energy alliance between China and Russia.

In recent years the countries that border the Arctic have become increasingly assertive about their territorial claims, as melting polar ice opens up the prospect of increased shipping and access to valuable natural resources.

Moscow, which controls about 50 per cent of the total Arctic coastline, has been stepping up efforts to develop the region, which could become another major source of gas supplies to China....
...MUCH MORE, including video

Also at the SCMP, April 10:
Vladimir Putin boasts of growing nuclear icebreaker fleet as he outlines Russia’s ambitious Arctic expansion plans

On Power of Siberia:
Big, Big Money: The 'Power of Siberia’ gas pipeline to China could be global game changer

And previously on the money front:
March 2019
Russian navy’s Arctic patrol vessels suffer delays of 3-4 years
President Putin almost looks upon the Arctic as his pet project, a really large pet project but his, and the fact the government budget can't come up with the loot to pay for the ships is an intriguing insight into Russia's true financial state. I guess even the Autocrat of all the Russias President of Russia has limits....
March 2019
"Saudi Arabia Looks to Enter Arctic LNG With Large Investment" 
January 2019
Ministry hints Putin’s Arctic ambitions are not realistic
Oct. 2018
"New state commission takes on Putin’s big plan for the Arctic"  
May 2018
"It’s an order from the Kremlin: shipping on Northern Sea Route to reach 80 million tons by 2024"
July 2018
The monster-icebreaker that might reshape Arctic shipping