RUSSIAN LNG GOES TO THE U.S.A.
RUSSIAN LNG GOES TO THE U.S.A.
LNG shipments from the Yamal Peninsula in the Russian Arctic Region, the newly launched Yamal LNG project, were supposed to provide heating and power for the Britons on the chilly New Year's Eve. However, it soon became clear that warming up freezing residents of Boston is even more lucrative business and on 30 December, 2018 these volumes were sent to the US.
The severe shortages of the natural gas in the northeastern states of the U.S.A. has spurred market prices in the region, making them the highest in the world, and thereby justified the economic of the Russian LNG re-exports across Atlantic from the terminal on the island of Grain in Kent.
Britain’s Department of Business, Energy and Industrial Strategy (BEIS), which has argued that gas supplies will still be ample this winter because of the UK’s import capacity, emphasised that 80% of the natural gas consumed in the UK is domestic or bought from Norway or Qatar.
Whether this liquefied natural gas shipment is eventually consumed in the UK is down to the market,” BEIS said. “But we can only benefit from having a diverse range of supplies.” the vessel could still be redirected if someone is willing to pay a higher price.
The cargo on the Christophe de Margerie tanker under the Cyprus flag, bought by the British division of the Malaysian company Petronas arrived in the UK on 28 December, and left for the US on 30 December on the Gaselys LNG tanker under the French flag, and is expected to arrive on the Northeastern coast of the U.S.A. on 22 January 2018. At the time of publication, Gaselys moved from the British coast across the Atlantic at a pace of 18 knots per hour.
In this way, the natural gas from the Yamal terminal, the construction of which was under the US sanctions, also supported by the British government, will arrive in the North American continent at the end of January to help residents of the northeastern states to survive the abnormally cold winter.
Private Russian company Novatek was in 2014 deprived of the opportunity to receive funding in the US and forced to form a $27bn budget of the project, inviting the Chinese investors.
The first LNG tanker from the port of Sabetta in Yamal was shipped on 9 December, 2017.
In the mean time, according to the oil and gas trading sources, the tanker may not reach Boston if the price situation in the United States changes - the Gaselys cargo may well be resold to the South-East Asia. Should this cargo on Gaselys eventually arrive to the U.S.A. it will be the first ever Russian LNG arriving to the US market!
Yamal LNG is implementing the project of the liquefied natural gas (LNG) production plant at the resource base of the Yuzhno-Tambeyskoye natural gas field. The shareholders of Yamal LNG are NOVATEK (50.1%), Total (20%), CNPC (20%) and the Silk Road Fund (9.9%). Within the framework of the project, three technological lines with a capacity of 5.5mn t each and one additional with the capacity of 1mn t will be built.
LNG production on the first production line of the plant began in early December.
#RussianLNG, #USnaturalgasimports, #Novatek, #YamalLNG, #ChristophedeMergerie, #Gaselys, #FromYamalToBoston
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