Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Arctic sea route opens for the summer with first Yamal LNG cargo

 A liquefied natural gas (LNG) tanker carrying a cargo from the Yamal LNG plant has spent this week making its way through Arctic waters north of Russia towards Asia, marking the first voyage of the 2019 summer season across the Northern Sea Route.

The Vladimir Rusanov, an Arc7-classed LNG tanker that can plough through semi-cleared waters, left the Sabetta port on June 29 and is in the Chukchi Sea close to the Bering Strait, Refinitiv Eikon shipping data showed on Friday.

The route is frozen for most of the year but is being increasingly used during the summer as ice clears quicker and for longer as the climate changes. Vessels are now able to cross the route without the use of ice-breakers to clear their path.

Independent Russian gas producer Novatek began operations at Yamal, in northwest Russia, with the aim to ship some of the LNG eastwards with its Arc7 tankers. Last year, as the terminal was ramping operations it began in December 2017, four such tankers were sent eastwards.

For Novatek, the route is attractive because it gives a much more direct access to the world’s largest LNG consumers in Asia. For other shipping companies, the route has the potential to cut the costs and time to access Asian markets.

PetroChina, the international arm of Chinese state energy firm CNPC, is a 20 percent stakeholder as well as customer of Yamal, with French oil major Total holding another 20 percent stake.

Novatek is expected to take a final decision to build Arctic LNG 2, another liquefaction and export facility next to Yamal, very soon after selling stakes to Total, two Chinese and two Japanese companies.

The Northern Sea Route is attracting other shipping firms: Maersk, the world’s largest container shipping company, sent a test vessel along the route last summer while Dubai government-controlled DP World said last month it wanted to run ports along the route.

Climate change activists lament the use of route however, because fear it will spoil pristine environments while encouraging shipping, a contributor to greenhouse gas emissions. (Reporting by Sabina Zawadzki; Editing by Jon Boyle)

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
On the changing landscape of global natural gas trade, the US has magnified its export power by remaining a net exporter for 13 months as of February 2019.
EWAnalysis: US LNG producers eye major growth
- Energy Web Atlas
The US LNG market has experienced rapid growth over the past decade due to the availability of inexpensive feedstock and increased worldwide demand.
Regional Focus: Nigeria moves to expand its liquefaction capacity
-Shem Oirere
The award in July 2018 of long-awaited contracts for the front-end engineering design (FEED) of Nigeria’s Train 7 gas plant expansion project to two consortia is the country’s latest attempt to address the enormous challenges of gas flaring and gas shortages for power plants and domestic consumption.

Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.