Russia Ships LNG to India in First Silk Road Fund Arctic to Asia Deal
Novatek Gas and Power Asia Pte. Ltd., Novatek’s wholly owned subsidiary, shipped to the Indian market its first cargo with LNG produced by the Yamal LNG plant, Novatek said in a press release published on Tuesday.
Yamal LNG’s shareholders are: Novatek (50.1 percent), Total (20 percent), CNPC (20 percent), and the Silk Road Fund (9.9 percent).
“One of our core priorities enumerated in the Company’s Corporate Strategy up to 2030, is the expansion of the supply geography and the growth of our presence in the key Asian markets”, Lev Feodosyev, First Deputy Chairman of Novatek said. “The first cargo delivered to the growing Indian market is an important development in this direction”.
The Yamal LNG site is on the Yamal Peninsula in the Arctic, and will eventually cater for three constantly travelling LNG trains, each with an annual capacity of 5.5 million tons. The first train was launched in late 2017; the second and third will be put into operation in 2018-19.
Since Novatek launched production at its Yamal LNG plant, it has out-shipped more than one million tons of liquified gas. A total of four powerful LNG carriers cross the Arctic Ocean and shuttle to and from the project terminal of Sabetta, and another 11 vessels of the same kind are under construction.
The ships have powerful icebreaking capacities and are able to ship along the Northern Sea Route during major parts of the year. In late December 2017, the Eduard Toll LNG Carrier made it through the Bering Strait and to Yamal without icebreaker assistance.
“This is a significant deal for Russia, India and an example of how China’s Silk Road Fund is helped facilitate basic supplies”, says Chris Devonshire-Ellis of Dezan Shira & Associates. “It illustrates the far-reaching and often practical nature of how China is using its capital to help finance supply chains, and further demonstrates that India is already a de facto beneficiary of some of the Belt and Road Initiative funding. Russia’s move to supply LNG to Asia is also going to be a major trend in the years ahead as its political issues with the West seem certain to continue.
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