... event, or are we seeing the beginning of a trend, which may signal the reorientation of Russian energy companies to Chinese financial markets? Will this be another “nail in the coffin” of the US dollar global dominance?
References
"Russia’s Yamal LNG gets round sanctions with $ 12 bln Chinese loan deal". Reuters. April 29th 2016.
"Up to 80% of Yamal LNG equipment to be manufactured in Chinese shipyards". Interfax. May 5th 2016.
"Project Information" and "Resource ...
... balance the price difference between East and West. Although it is highly doubtful that contracts referencing «hub price» will replace oil-linked contracts in Asia, Russia is ready to participate in the new price setting process. To reinforce Russia’s LNG presence in the Asia-Pacific marketGazprom Marketing & Trading Singapore (a fully-owned subsidiary of Gazprom Group) was set up in 2009. It has concluded a series of spot deals since December 2009 on LNG supplies to Japan, South Korea, China and Taiwan....
... situation which has changed the dynamics of the European gas market. Russian leadership is actively campaigning for the launch of LNG projects, and despite all the problems and high costs, some can be completed by the end of this decade. the success of the Russian LNG will strongly depend on the ability of Russian market players to build up relations with the different groups of foreign partners. Read the text Dr. Tatiana Mitrova is the Head of Oil and Gas Department in the Energy Research Institute of the Russian ...
... the Arctic. USA has peaked in the 1990s, but its 9 Alaskan fields are now in sharp decline and Norway’s Snovhit Field is not matching the Russian spike in production as it is only producing single digits output vs. 45 million tons extracted by Russia. In fact, Alaska’s Kenal LNG Terminal was closed due to its inability to compete against the new Sakhalin LNG. Moreover, competition in the near future from Russia is set to rise further following the anticipated increase in shipments via the Northern Sea Route. To cite some ...
... suicidal if on a move. Also, as global shipping becomes more large scale, the cost will increase per unit; for example a large LNG tanker costs $300 million which makes it an incredibly prized asset, allowing firms to invest in security and heighten onboard ... ... similar setup existed in the 21st century maybe its countless wars would be avoided. The recent and now famous OP-ED, by the Russian President in NYT, hits the nail on the head as it is dangerous for anyone to see themselves as exceptional and more parity ...
... unresolved. If current approach to pricing persists, the competitiveness of Russian gas in China seems doubtful. When LUKoil released its report, Russian gas cost ~$100 more than Turkmens and it was only somewhat competitive in contrast to expensive LNG from Australia and possible future deals all the way from Qatar.
Russia In Search of New Fields – Where Hast Thou Gone?
Russia has intermittingly changed between 1st and 2nd place with Saudi Arabia in total oil production over the recent years and hold world’s eight largest proven reserves, but maintaining ...
... Asia’s oil from the current 6% – with China being the main consumer. Further, by 2020-2022 the figure should be around 14-15%. Gas wise, it is amazing that Russia, the energy superpower, sells no pipeline gas to Asia, and only marginally sells LNG from 2009. By 2020-2022 Russia ambitiously aims to reverse this trend by supplying 16-17% of Asia’s gas – with the figure rising to 19-20% by 2030. In all, this shows a positive trend as Russia must diversify its eggs among more than one basket. Its main European ...
... was a sizeable figure for China, as it is an emerging player in regards to this fuel type; although it currently adds up to a small portion of its overall energy mix, its growth has been very rapid. China has single-handedly fuelled more demand for LNG and expanded not only in its domestic, but also in international markets, like Africa (See: NYT). I was personally excited about opportunities between Russia and China, as Energy Minister Alexander Novak, issued a statement that both were working on gas and oil deals prior to Xi's arrival (See: Prime). I even hoped to discuss these issues with Novak personally, at "The Russian Energy Conference",...
... need to keep a close eye on these developments and they may well be forced to soon drop prices for natural gas to make shale LNG imports less appealing – all will depend on the final price which may well be very low as US shale is incredibly cheap ... ... make their products competitive. As experts at VNIIGAZ argue, an institute for natural gas, large scale shale production in Russia does not make economic sense before around 2025-2030. Russia has plenty of natural gas, the most in the world, and realistically ...
... capacity will remain steady, but a similar question should be posed. Fields like Yamal and Shtokman require high prices for their production to be financially feasible; with returns of 10% to 12% for the energy giants to participate. Finally, perhaps if Russia continuous to do well with its demographic campaign it may offset some of the costs by developing a local economy and demand, thus making exports less expensive.
- Liquefied Natural Gas with Asia on Route:
LNG demand will increase, particularly in Asia, as developing economies will search for more energy. As a consequence other LNG users will see price rises, for instance Japan will see continuous increases in prices for the next 20 years; especially now ...
