Page 12 - GLNG Week 30

GLNG ASIA GLNG

Russia overtakes US in

LNG supplies to China

PERFORMANCE RUSSIA continues to make inroads into Asian In June 2019, Russia exported 67,000 tonnes
LNG markets. The latest Chinese customs data of LNG to China, while the US exported none
show that Russia supplied 396,000 tonnes of that month. The latest figures for Russian LNG
LNG to the Asian country in June, compared shipments to China show how dramatically LNG
with 340,000 tonnes arriving from the US. trade between the two countries has grown over
According to the customs data, Russia’s LNG the past year.
exports to China surged by 20.7% on May fig- Overall, Russia has more than quadrupled its
ures, while US exports only rose 2.4% month on LNG exports since 2009 and is aggressively pur-
month. suing further expansion. Earlier in July, Russian
This is perhaps not surprising given that Minister of Energy Alexander Novak wrote in an
US exports of LNG to China had only recently article that new megaprojects could allow Russia
resumed, having been disrupted by the trade war to take up to 15% of the global LNG market by
between the two countries. Earlier this year, Bei- 2025. This compares with around 7% in 2019 –
jing started granting tariff waivers to buyers of and likely a higher figure in 2020.
US LNG in a bid to encourage them to increase Total Chinese imports of LNG also rose 29%
imports. year on year in June 2020, to 5.79mn tonnes. The
Data from the US Energy Information figure refutes previous projections that China’s
Administration (EIA) show that the country has June imports were set to fall from May levels
only been exporting LNG to China again since of 5.6mn tonnes. This comes after the early hit
March. Prior to this, the last time US LNG was China took from the coronavirus (COVID-19)
shipped to China was in February 2019. pandemic.™

Ice-breaking LNG carrier reaches

Japan in industry first

PIPELINES & MITSUI OSK Lines (MOL) said this week that of 13,700 nautical miles (25,372 km). At an
TRANSPORT the ice-breaking Vladimir Rusanov LNG carrier, average speed of 15 knots, that distance can
which it owns and operates jointly with China be covered in 38 days.
COSCO Shipping, reached the LNG terminal in MOL noted that when the Vladimir Rus-
Ohgishima, Tokyo Bay, on July 23. This marks anov was navigating the NSR, some ice still
the first time an ice-breaking LNG carrier has remained, particularly in the East Bering Sea.
called in Japan, and also the first time LNG has The vessel either avoided sailing through the
been delivered to the country via the Northern areas of ice or conducted ice-breaking naviga-
Sea Route (NSR). tion in these areas, which resulted in roughly
The Vladimir Rusanov serves the Yamal seven days of navigation from the port at
LNG terminal in Sabetta, Russia. MOL said Sabetta to the Bering Strait.
the ship had departed Sabetta on June 29, sail- The shipping company noted that the navi-
ing along the NSR via the Kara, Laptev, East gation distance via the NSR being roughly 65%
Bering and Chukchi seas, as well as the Ber- shorter than via the Suez Canal also contrib-
ing Strait. According to MOL’s press release, uted to reducing greenhouse gas (GHG) emis-
sailing via the NSR – which can be used in sions from vessels using the route.
the summer when the ice melts – involves a The Vladimir Rusanov is an Arc 7 ice-
distance of 4,900 nautical miles (9,075 km). class LNG tanker, with the capacity to hold
A vessel travelling at an average speed of 172,000 cubic metres of LNG, that has been
15 knots can cover this route in 14 days. By in operation since 2018. It delivered the cargo
contrast, the winter route involves sailing to the Ohgishima LNG terminal under a spot
via the Suez Canal, which involves a distance contract.™

P12 www. NEWSBASE .com Week 30 31•July•2020