Page 7 - FSUOGM Week 15 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Russian authorities clear plan

for Sakhalin pipeline

RUSSIA RUSSIA’S state design agency Glavgosexper- districts of Okhinsky and Nogliki in the Sakha-
tiza has approved plans filed by Rosneft for the lin region, connecting the Sabo oil pumping
Rosneft was forced to development of a pipeline to deliver oil from its station to the Dagi oil treatment unit. The pipe-
stop using the older mature fields on Sakhalin Island. line’s capacity is around 950,000 tonnes per year
pipeline for its Sakhalin Rosneft said last summer that its RN-Sakhal- (19,000 barrels per day), although RN-Sakhal-
oil last summer. inmorneftegaz subsidiary, which controls doz- inmorneftegaz typically produces 24,000-30,000
ens of mostly mature fields on and offshore bpd.
Sakhalin, had reduced oil supply because of the Russian authorities are eager to see the situ-
OPEC+ agreement on cuts. But it is understood ation resolved, given the impact of the disrup-
that the Okha-Komsomolsk-on-Amur pipeline tions to Sakhalinmorneftegaz’s operations to
used to carry Sakhalinmorneftegaz’s oil is in a the Sakhalin economy. Russian Prime Minis-
state of disrepair. ter Mikhail Mishustin even ordered Rosneft to
The pipeline was built in 1974, when Russia resume production in September.
first began developing the Far East. It is the site of This is not Rosneft’s first attempt at such a
frequent spills and other accidents, and Rosneft project. In 2017, a contractor called Sakhal-
was forced to stop using it altogether in July last inmorneftemontazh was enlisted to build the
year. Sabo-Dagi pipeline. But work was halted after
The company's solution is to build the 117- the contractor went bankrupt.
km Sabo-Dagi pipeline linking Sakhalinmor- The first stage of the Sabo-Dagi project will
neftegaz’s transport system with that of the cost RUB4.9bn ($66mn), while the second
Sakhalin-1 consortium, of which it is a member. stage, due to be completed in 2025, should cost
The Sabo-Dagi pipeline runs through the RUB7.5bn. ™

PERFORMANCE

Russia slashes fossil fuel forecasts

RUSSIA RUSSIA has slashed its forecasts for oil, gas and to 743.1 bcm from 758.1 bcm, while the predic-
coal production in 2021 and 2022, taking into tions for 2023 and 2024 remain unchanged at
The pandemic's impact, account the pandemic’s impact, OPEC+ quotas 773.1 bcm and 795.1 bcm respectively.
lower commodity prices and lower commodity prices. The forecast for LNG production in 2021
and OPEC+ quotas The government now projects that oil output remains notably unchanged at 30.1mn tonnes.
were factors. will reach 517mn tonnes (10.4mn barrels per This supply comes mainly from the Gazprom-led
day), versus a previous projection of 11.25mn Sakhalin LNG project in the Russian Far East
bpd. The earlier forecast was made before Rus- and Novatek’s Yamal LNG plant in the Arctic.
sia committed to unprecedented production Russia approved a new roadmap for expanding
cuts with its OPEC+ allies, in attempt to rebal- its LNG exports last month, targeting an output
ance markets following the demand destruction as high as 140mn tonnes per year (tpy) by 2035.
caused by the pandemic. The government has also decreased its fore-
The prediction for output in 2022 has also casts for coal output over the next three years. It
been lowered to 548mn tonnes (11mn bpd), now expects extraction to amount to 390.7mn
compared with 11.2mn bpd previously. But the tonnes in 2021, down from 455mn tonnes. Pro-
forecast for production in 2023 has not changed duction is projected to fall to 389.5mn tonnes in
from 11.17mn bpd, while the one for 2024 has 2022 instead of growing to 465mn tonnes. It will
been increased slightly to 11.17mn bpd from remain at this level in 2023 instead of expanding
11.15mn bpd. to 475mn tonnes, but will rise to 420mn tonnes
Russia has also reduced its forecast for gas in 2024, although it was previously expected to
extraction this year to 698.3bn cubic metres from reach 490mn tonnes that year.
750.1 bcm. The country’s biggest gas company Global coal demand is under unprecedented
Gazprom suffered a slump in output last year pressure, as the energy transition gains momen-
owing to weaker demand in Europe, as a result tum across the world. Coal consumption is antic-
of the pandemic and a range of other factors, ipated to suffer significant losses in Asia over the
including greater competition from LNG sup- coming decades, as countries switch their power
plies. The gas forecast for 2022 has been lowered systems to natural gas and renewables. ™

Week 15 14•April•2021 www. NEWSBASE .com P7