Page 6 - AsianOil Week 03 2023

AsianOil PIPELINES & TRANSPORT AsianOil

China serving as Russian conduit,

transporting oil to Asia

CHINA IN an increasing number of reports across Asia, around 600 thousand barrels, could serve the
Chinese supertankers are actively working as a same purpose throughout 2023.
China is indirectly conduit to Asian oil markets for Russian crude If confirmed, this would provide enough
facilitating Russian oil sellers by continuing to ship oil to the continent, space to shift up to 15 million tons of crude in
exports to Asia. despite calls elsewhere for Western sanctions to 12 months constituting an estimated 10% of all
be imposed worldwide. Urals crude produced.
One recent report posted by the Reu- China has been one of Russia’s main release
ters News Agency, and carried by a number valves for oil stocks in the past few months, with
of regional media outlets, has in recent days Beijing in the process proving a valuable source
claimed that at least four, possibly five super- of foreign capital for Moscow as its war with
tankers, are acting on behalf of Russian crude Ukraine approaches its first anniversary.
sellers in this manner. Neither Russia’s energy or transport min-
The claims are made despite frequent reports istries have made comment on the shipment.
of shipping shortages with the main destination China’s typically vocal Foreign Ministry too has
thought to be ports on China’s east coast. refused to address the issue publicly.
According to the Reuters report, tracking Hardeep Singh Puri, India’s Minister of
data produced by Eikon has recorded shipments Petroleum and Natural Gas, has, however, con-
of Russian Urals crude with scheduled delivery tinued to use the oft-repeated New Delhi line
dates between December 22nd and January that India would continue to make oil purchases
23rd, despite the “oil price cap by the Group of solely based on price.
Seven rich nations” which has “restricted the use Discounts of between US $15 and $20 a barrel
of Western cargo services and insurance.” are being secured by Indian refineries according
In addition to the four supertankers shipping to media reports.
to China, it is also believed that a fifth super- In China meanwhile, 2022, saw the volume
tanker, or possibly a VLCC (very large crude of Russian crude imported move past long term
carrier) is also transporting Russian crude to supplier Saudi Arabia, increasing by over 50%
ports in India. across the year according to some reports.
India has repeatedly gone on record thumb- This trend is expected to continue through
ing its nose at Western requests to abide by inter- 2023, as increasing numbers of shipments from
national community goals regarding Russian oil, Russia’s Arctic ports wind their way east.
as the subcontinent continues to import oil from Coupled to a December statement made by
Moscow. President Xi Jinping that energy trade between
One Chinese official working at a company the two nations was crucial to their relationship
connected to the shipment of Russian crude was in “China intends to work with Russia to build
quoted Reuters as saying “(W)ith Urals prices even (an) closer partnership and cooperation
well below the price cap, the business of buying in the energy sector,” the Chinese leader’s com-
and trading Urals is essentially legitimate.” ments now have some questioning the effective-
Accurate and verifiable data on actual prices ness of the Western sanctions.
being paid by China, however, is notoriously This is a factor only reinforced when LNG
hard to come by. exports from Moscow to Beijing are factored
The same source suggested that around in; 2022 also saw record levels of LNG imports,
18 Chinese supertankers as well as a further primarily from the Russian Yamal LNG project
16 Aframax vessels, each capable of carrying exported to China. ™

P6 www. NEWSBASE .com Week 03 20•January•2023