russia launches giant yamal gas project
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

In the Arctic

Russia launches giant Yamal gas project

Egypt Today, egypt today

Egypt Today, egypt today Russia launches giant Yamal gas project

Russia launches Friday its Yamal gas plant in Arctic Siberia
Sabetta - AFP

Russia launches Friday its Yamal gas plant in Arctic Siberia, a gigantic project in one of the world's most remote areas, as the region becomes more accessible due to climate change.

Russia's privately owned gas producer Novatek has partnered with France's Total and China's CNPC at the helm of the project, which was scheduled to send its first shipment of liquefied natural gas (LNG) from the port of Sabetta on Friday.

The $27 billion site (23 billion euros) -- one of the most ambitious in the world -- is set to start with a production capacity of 5.5 million tonnes per year and increase this to 16.5 million tonnes by the start of 2019.

Yamal LNG, owned by Novatek (50.1 percent), Total (20 percent), China's CNPC (20 percent) and the Silk Road Fund (9.9 percent) has had its share of financial and technical hurdles over the years.

While the Yamal peninsula has considerable hydrocarbon reserves, it is an isolated region in the Arctic circle, about 2,500 kilometres (1,550 miles) from Moscow and covered by ice for most of the year, where temperatures dip as low as -50 degrees Celsius (-58 degrees Fahrenheit).

Since its inception in late 2013, an airport and a port have had to be constructed for the project, as well as gas reservoirs and the LNG plant itself.

"Despite challenging operating conditions, Yamal LNG was delivered on time and on budget," said Samuel Lussac, an oil and gas specialist at Wood Mackenzie. "That is unusual in the LNG industry."

"Novatek, once a domestic gas supplier, becomes a global LNG player" with the project, he said. It will also boost Total's existing strength in the LNG sector, where it is the second largest producer in the world.

Financing the project was tricky as US sanctions against Novatek made it impossible to borrow from Western banks. Eventually Chinese funds resolved the issue -- a relief for Moscow, for whom the project has strategic importance.

With Yamal LNG, Russia hopes to demonstrate its capacity to exploit considerable Arctic reserves despite major technological challenges and intends to strengthen its market presence in Asia. Its main gas market is still Europe via several pipelines.

- Northern Passage -

Despite the project's completion, Yamal LNG still faces risks, and the coming months will show "whether the plant can operate smoothly in the harsh Arctic environment", Lussac said.

Transportation through the Northern Sea Route also remains undeveloped, and "its feasibility as a major LNG delivery route is unclear", he said.

Russia wants the route to become a shorter, easier passage to coveted Asian markets and has built several massive icebreakers in recent years.

It is also hoped the project will contribute to understanding of how to navigate the Northern Route and "give more clarity into the potential development of the Arctic", said Sberbank-CIB analyst Valery Nesterov.

The route along the northern coast of Siberia allows ships to cut the journey to Asian ports by 15 days compared with the conventional route through the Suez Canal, according to Total.

After beginning LNG production on Tuesday, the first cargo will be loaded Friday onto the tanker Christophe de Margerie, named after a former CEO of Total who died in an accident in a Moscow airport in 2014.

In August, the vessel became the first commercial gas tanker to traverse the Northern Route without assistance from an icebreaker.

After Yamal LNG, Novatek plans to develop a new giant project in the far north called Arctic-2 in the Kara Sea, with an output set to match that of Yamal.

Source:AFP

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

russia launches giant yamal gas project russia launches giant yamal gas project



GMT 07:22 2017 Monday ,20 November

Honda recalls 800,000 minivans over faulty seats

GMT 07:15 2017 Thursday ,30 November

Colombian President invites UAE companies

GMT 13:44 2013 Wednesday ,07 August

Chinese game developers bet on smartphone games

GMT 10:30 2011 Tuesday ,23 August

The Arab-Spanish investment forum 2011

GMT 10:49 2017 Monday ,06 November

Britain frozen out as EU finance chiefs plot future

GMT 14:30 2017 Wednesday ,06 December

India scent Test victory as pollution makes bowlers vomit

GMT 12:32 2018 Tuesday ,16 October

Runaway former sex offender nabbed in Thailand

GMT 16:34 2017 Wednesday ,01 March

Afghan capital attack toll jumps to 16

GMT 20:32 2013 Monday ,17 June

Porsche finds a new target audience

GMT 10:13 2011 Sunday ,31 July

Distressed debt firm eyes Nakheel creditors

GMT 18:25 2016 Thursday ,08 September

Ex-Lankan president’s ‘vanity airline’ grounded

GMT 21:02 2018 Wednesday ,05 September

Magnitude 5.5 earthquake strikes Russia’s Urals region

GMT 18:54 2014 Tuesday ,14 January

Cobalt nanoparticles applied in designing biosensor

GMT 12:00 2013 Wednesday ,31 July

Saudi consumers given teeth whitening kit warning

GMT 14:26 2014 Wednesday ,12 February

Earthquake behind shroud of Turin image

GMT 08:58 2014 Wednesday ,15 January

\'Lone Survivor\' blows away North American box office

GMT 15:32 2015 Sunday ,27 September

Thousands march to remember Mexico's missing students

GMT 01:25 2017 Thursday ,05 January

Strong Earthquake Strikes Off Coast of Fiji

GMT 12:51 2011 Friday ,08 July

No plans to merge Gazprom and Naftogaz
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday