Liquefied Natural Gas is something we relate to Qatar, as the worlds’ largest exporter of the commodity in is coolest, liquid form. However, Russia are gaining some ground in this competitive market, by attempting to transfer LNG from the Arctic Yamal Peninsula to the rest of the world, including Asian markets where LNG is heavily relied upon.
Russian company Novatek have developed ice-breaking tankers to wade through the freezing temperatures and ice covered waters. It is thought that the Yamal field could produce as much as 16 million tonnes of gas per year. However, the company may only be able to operate for the 5 warmer months of the year, as technology has not been so advanced as to allow for the ice-breaking tankers to get through freezing ice covered water during winter months.
The facility is currently producing gas, ready for shipment. The ice-breaking tankers are anticipated to halve the time needed to ship to China, versus regular tankers that are unable to break through ice. President Putin lifted export taxes from LNG shipments, in an attempt to be more competitive in a busy market place. Russia currently operate well in the exportation of gas via pipelines throughout Europe. Tackling the LNG market will be a completely new challenge for the country.
Sources: LNG World News, Telegraph, Bloomberg