LNG Gulf of Ob and Logistics

The Yamal to Europe natural gas pipeline is a 4,107 km long pipeline  designed to connect Russia’s gas in Yamal and Siberia to European natural gas markets. The pipeline’s original route is through Belarus. Construction of the pipeline commenced in 1994 with Gazprom being the lead  developer and the pipeline was commissioned in 2006 at an estimated cost of $ 36 bn. Alongside Russia’s Arctic liquefied natural gas (LNG 2) project similar natural gas projects are  being developed in the Gydan Peninsula in Siberia with annual LNG production capacity likely to be 19.8 million tons . Contingent upon launch of LNG 2 project Yamal LNG and Arctic LNG 3 projects will be developed.

LNG vessels and Northern Sea Route

The Arctic LNG 2 project in the Gulf of Ob and its associated LNG storage facilities have a capacity of 687,000 m³ and are designed to host three natural gas liquefaction trains each having an annual  production capacity of 6.6 million tons of LNG. The transportation route to China and other Asian markets would be the Northern Sea route by a fleet of ice category LNG carriers. The LNG export vessels would sail through the Northern Sea route and Russia is constructing ice breaker vessels at a fast track for Yamal LNG project.This transportation route would be all weather and available around the year thereby ensuring energy security for Asian consumer markets . The LNG export vessels would transit through the Northern Sea via the Bering Strait and reach Asia in around 15 days. Contractual obligations with Total, a joint venture partner, would also need to be resolved to avoid international arbitration. Construction of a fleet of icebreakers is an integral component of Russia’s all weather and all year round Arctic strategy to enable offshore exploration  and navigational assistance to commercial shipping.

Russia’s LNG  Stranded

After the Ukrainian conflict European consumer markets are not accepting pipeline gas from Russia. The current thinking in Russian energy circles is to  convert the excessive gas towards development of the petrochemical industry as well as enhanced production of polymeric materials at Yamal.Talks are ongoing between China and Russia in this regard. Diversion of excessive natural gas in such huge quantities may offset any lower costs associated with renewables

By Nadir Mumtaz