The document discusses the outlook for Russian LNG projects against the backdrop of sanctions and decline in relations with the West. It provides an overview of the major Russian gas companies and LNG projects, both operational and planned. Key projects discussed include Sakhalin LNG, Baltic LNG, Vladivostok LNG, Yamal LNG and others. However, sanctions and poor political relations are slowing cooperation with Western companies and markets, forcing Russia to focus on Asian partners for its expanding LNG ambitions.
Report on Ukraine and European energy security by Amb. Keith C. Smith, Center for Strategic and International Studies (CSIS), USA, at Lviv International Security Forum, 15-16 April, 2010
Russia's gas pivot to Asia: a short-sighted policy or a long-term strategy?Olga Gerasimchuk
This presentation aims to examine the reasons which have prompted Russia to seek closer gas cooperation with Asia Pacific countries (mainly China), as well as hightlight its current gas pipeline and LNG projects in the East.
The European Union’s (EU) consumption of natural gas has been growing rapidly over the last two decades. Gas has become an increasingly important component of the EU’s energy mix, with gas-fired power plants gradually replacing less environmentally friendly coal plants. Domestic gas production covered close to 60 percent of the EU’s consumption needs during the 1990s, but by 2007 it declined substantially around 40 percent (see Figure 1). The rest is imported from three main sources: Russia (around 40 percent of total gas imports), Norway (around 25 percent) and various African countries among them Algeria, Nigeria, Libya and Egypt which account for around 25 percent. The last few years have also heightened public worries in Europe over the security of its gas supplies, primarily those imports coming from Russia. These fears were partly confirmed in January 2009 when several EU and non- EU countries faced a sudden cut in their gas supplies. The Russian- Ukrainian stand-off only reinforced the argument that more needs to be done to strengthen the reliability of access to vital energy resources.
Authored by: Wojciech Paczynski
Published in 2009
Offshore wind industry is being used by a number of countries to harness the energy of strong, consistent winds that are found over the oceans. In the United States, abundant offshore wind resources have the potential to supply immense quantities of renewable energy to major U.S. coastal cities. The US has an attractive potential of ~10 GW by 2020, driven from sites in the Atlantic Ocean, and ~54 GW by 2030, at which time the Pacific Coast and the Great Lakes are expected to be developed.
At present, no new project is commissioned in the US and of the current ~6.9 GW in the US pipeline, only ~1.4 GW is expected to be commissioned by 2020 due to long consent periods and an undeveloped supply chain, indicating a gap of 8.6 GW to DoE ambition in 2020. Immature supply chain, approval delays and low cost competitiveness are key factors for slow development, however, expected return of PTC is an upside.
This report offers insights on US offshore wind industry analysing its current position, upfront challenges and future expectations. Considering the great potential, global contractors and financial investors are expected to enter the US offshore wind industry as they can utilize experiences gained in Europe. Incumbents as well as new entrants are developing projects in partnership with other members of the supply chain in order to gain experience and reduce risks. This report also presents a thorough evaluation of the key players in the industry and developments for wind energy project realisation in the US.
Report on Ukraine and European energy security by Amb. Keith C. Smith, Center for Strategic and International Studies (CSIS), USA, at Lviv International Security Forum, 15-16 April, 2010
Russia's gas pivot to Asia: a short-sighted policy or a long-term strategy?Olga Gerasimchuk
This presentation aims to examine the reasons which have prompted Russia to seek closer gas cooperation with Asia Pacific countries (mainly China), as well as hightlight its current gas pipeline and LNG projects in the East.
The European Union’s (EU) consumption of natural gas has been growing rapidly over the last two decades. Gas has become an increasingly important component of the EU’s energy mix, with gas-fired power plants gradually replacing less environmentally friendly coal plants. Domestic gas production covered close to 60 percent of the EU’s consumption needs during the 1990s, but by 2007 it declined substantially around 40 percent (see Figure 1). The rest is imported from three main sources: Russia (around 40 percent of total gas imports), Norway (around 25 percent) and various African countries among them Algeria, Nigeria, Libya and Egypt which account for around 25 percent. The last few years have also heightened public worries in Europe over the security of its gas supplies, primarily those imports coming from Russia. These fears were partly confirmed in January 2009 when several EU and non- EU countries faced a sudden cut in their gas supplies. The Russian- Ukrainian stand-off only reinforced the argument that more needs to be done to strengthen the reliability of access to vital energy resources.
Authored by: Wojciech Paczynski
Published in 2009
Offshore wind industry is being used by a number of countries to harness the energy of strong, consistent winds that are found over the oceans. In the United States, abundant offshore wind resources have the potential to supply immense quantities of renewable energy to major U.S. coastal cities. The US has an attractive potential of ~10 GW by 2020, driven from sites in the Atlantic Ocean, and ~54 GW by 2030, at which time the Pacific Coast and the Great Lakes are expected to be developed.
At present, no new project is commissioned in the US and of the current ~6.9 GW in the US pipeline, only ~1.4 GW is expected to be commissioned by 2020 due to long consent periods and an undeveloped supply chain, indicating a gap of 8.6 GW to DoE ambition in 2020. Immature supply chain, approval delays and low cost competitiveness are key factors for slow development, however, expected return of PTC is an upside.
This report offers insights on US offshore wind industry analysing its current position, upfront challenges and future expectations. Considering the great potential, global contractors and financial investors are expected to enter the US offshore wind industry as they can utilize experiences gained in Europe. Incumbents as well as new entrants are developing projects in partnership with other members of the supply chain in order to gain experience and reduce risks. This report also presents a thorough evaluation of the key players in the industry and developments for wind energy project realisation in the US.
With wi-fi and networked capabilities, two mobile apps, powerful free software and a lifetime warranty, the Epson LW-PX800 thermal transfer label printer transforms the workstation label maker into a workplace label printer.
Most car buyers want to drive out of lots without being ripped off by the dealership. We are here to teach you some techniques when it comes to car buying. From bargaining for a better price, visit more than one dealership to compare prices, and how financing with your own bank can save you money. By following our techniques, there is no reason you won’t be able to walk out of the dealership with their ad listed price.
The future of manufacturing depends on a number of technological breakthroughs in
robotics, sensors and high-performance computing, to name a few. But nothing will
impact how things are made, and what they are capable of, more than the materials
manufacturers use to make those things.
The president of Russia is considered the head of th.docxgabrielaj9
The president of Russia is considered the head of the state and the government, while the prime minister serves as his deputy (the equivalent of a Vice President in the United States of America). They are co-heads of the government, and they both belong to the same political party – United Russia (though Putin ran as an independent in 2018).
The president of Russia has a central role in the government’s political system. The president mainly influences the executive branch’s activities. He also appoints the prime minister and other members of the government, chairs the cabinet’s meetings, and gives orders to his deputy and other members regarding governance. He can also revoke any act or law passed by the government.
Russian Prime Minister Dmitry Medvedev (left) with Russian President Vladimir Putin (right)
“Russia needs to radically overhaul its administrative and judicial systems and embrace new technology otherwise economic stagnation could threaten its security, Vladimir Putin’s chief adviser on economic reform has warned.
Alexei Kudrin, the former finance minister, was asked by Mr Putin last year to come up with a new strategy for economic policymaking for the next term, following the president’s planned re-election next year.
Outlining his plans on Friday, Mr Kudrin said: “We have come to face the problem that Russia has fallen behind technologically in the world. That, in my view, is the most serious challenge we face in the coming 10 to 15 years.”
Financial Times, Jan 13, 2017
Alexei Kudrin
Kudrin…
“We will struggle with diminishing defense potential and threats to national sovereignty if we don’t become a technological power. Even military experts say that technological challenges facing Russia are bigger than geopolitical and military ones,” Mr Kudrin said.
“Our entire foreign policy should be subordinated to the task of technological development.”
Russia is popularly known as the world’s second largest natural gas producer and the 3rd largest oil producer. The country has a large number of major oil and gas companies. Most of the top oil companies in Russia have continued to maintain significant downstream and upstream gas and oil operations. This includes retail service stations, exploration and production divisions and petroleum refineries.
This is the largest oil company in Russia. Reports show that the company produced around 1.5 billion barrels of oil in the year 2014. Besides, the company is also ranked as the 3rd largest natural gas company in the world with a production of more than 347 million barrels of oil equivalent.
The company’s market capitalization is around $38.7 billion which automatically makes it the highest valued gas and oil company. Rosneft operates 13 refineries in the country and has shown tremendous interest in around seven refineries based in Eastern and Western Europe. The company maintains exploration and production operation in countries such as Canada, Vietnam, USA, Norway and.
With wi-fi and networked capabilities, two mobile apps, powerful free software and a lifetime warranty, the Epson LW-PX800 thermal transfer label printer transforms the workstation label maker into a workplace label printer.
Most car buyers want to drive out of lots without being ripped off by the dealership. We are here to teach you some techniques when it comes to car buying. From bargaining for a better price, visit more than one dealership to compare prices, and how financing with your own bank can save you money. By following our techniques, there is no reason you won’t be able to walk out of the dealership with their ad listed price.
The future of manufacturing depends on a number of technological breakthroughs in
robotics, sensors and high-performance computing, to name a few. But nothing will
impact how things are made, and what they are capable of, more than the materials
manufacturers use to make those things.
The president of Russia is considered the head of th.docxgabrielaj9
The president of Russia is considered the head of the state and the government, while the prime minister serves as his deputy (the equivalent of a Vice President in the United States of America). They are co-heads of the government, and they both belong to the same political party – United Russia (though Putin ran as an independent in 2018).
The president of Russia has a central role in the government’s political system. The president mainly influences the executive branch’s activities. He also appoints the prime minister and other members of the government, chairs the cabinet’s meetings, and gives orders to his deputy and other members regarding governance. He can also revoke any act or law passed by the government.
Russian Prime Minister Dmitry Medvedev (left) with Russian President Vladimir Putin (right)
“Russia needs to radically overhaul its administrative and judicial systems and embrace new technology otherwise economic stagnation could threaten its security, Vladimir Putin’s chief adviser on economic reform has warned.
Alexei Kudrin, the former finance minister, was asked by Mr Putin last year to come up with a new strategy for economic policymaking for the next term, following the president’s planned re-election next year.
Outlining his plans on Friday, Mr Kudrin said: “We have come to face the problem that Russia has fallen behind technologically in the world. That, in my view, is the most serious challenge we face in the coming 10 to 15 years.”
Financial Times, Jan 13, 2017
Alexei Kudrin
Kudrin…
“We will struggle with diminishing defense potential and threats to national sovereignty if we don’t become a technological power. Even military experts say that technological challenges facing Russia are bigger than geopolitical and military ones,” Mr Kudrin said.
“Our entire foreign policy should be subordinated to the task of technological development.”
Russia is popularly known as the world’s second largest natural gas producer and the 3rd largest oil producer. The country has a large number of major oil and gas companies. Most of the top oil companies in Russia have continued to maintain significant downstream and upstream gas and oil operations. This includes retail service stations, exploration and production divisions and petroleum refineries.
This is the largest oil company in Russia. Reports show that the company produced around 1.5 billion barrels of oil in the year 2014. Besides, the company is also ranked as the 3rd largest natural gas company in the world with a production of more than 347 million barrels of oil equivalent.
The company’s market capitalization is around $38.7 billion which automatically makes it the highest valued gas and oil company. Rosneft operates 13 refineries in the country and has shown tremendous interest in around seven refineries based in Eastern and Western Europe. The company maintains exploration and production operation in countries such as Canada, Vietnam, USA, Norway and.
Journey to Sakhalin: Royal Dutch Shell in Russia | HBS Case Study Presentation Md. Adib Ibne Yousuf
This is the final term paper group presentation on Harvard Business School (HBS) Case study.
Course: Strategic Management
Developed by: Md. Adib Ibne Yousuf
Global Energy Trends in European-Russian ContextDmitry Shtykhno
Presented to the Seventh Annual Meeting of the Applied Business and Entrepreneurship Association International (ABEAI) Waikoloa, Hawaii, USA November 16-20, 2010.
Research examines global energy and focuses on important trends and implications: shifts in energy supply-demand and global energy security implications; shortages in proven deposits and increasing demand for oil worldwide that drive energy-related technological and political-economic changes; environmental and economic pressure pushing for renewable energy and changing the global energy equation. Research explores the dynamics of energy sector in Russia and their impacts on the European region where dependence on Russia is exacerbated by increasing competition for energy access from economic giants of China, India, and other emerging economies.
On September 2015, Russian Gazprom and list of European energy giants announced an agreement on further constructing of the Nord Stream 2 (NS 2) – another one gas pipeline from Russia under the Baltic Sea landing in Germany. At once it became clear, that constructing the pipeline is a kind of a threat for Ukraine who now is a crucial important gas transporter from Russia to the European Union (EU) member states and thereafter would undermine Ukrainian positions bringing economic losses, political and security threats .
From Ukrainian prospective the Nord Stream 2 is treated as a mostly politically driven project, at somehow aimed against Ukraine, which will also increase dependence of the EU states on Russian gas, and consequently make those more vulnerable to Russia’s policy in future. Such arguments are widely used by Ukrainian politicians and in official statements.
However, such perception does not take into consideration arguments and befits of those EU member states, who support the project and current internal political conditions. At final extent, such approach brings to a kind of misunderstanding between supporters and opponents of the Nord Stream 2 construction and achieving of the Ukrainian aim is rather questionable.
Nord Stream 2 problem in general consist of two dimensions: economic and political. Those are at somehow contradictory for the project’s actors. The first one is based on benefits that some countries (first of all Russia and certain EU member states) expect to gain with the NS 2 project. The political one is in the domain contradiction of supporting Russia in its energy business during its violating of the international law, threats for Ukraine and its concerns regarding loosing gas supply interdependence with the EU. Current ways and attempts to impact on the NS 2 development do not manage to bundle both those dimensions to find a solution that will acceptable for all parties involved in all developments and outcome related to construction and future operation of the NS 2 pipeline.
Future of the Nord Stream 2 is not clear yet and this means necessity for Ukraine to continue taking steps aimed on protecting its own position. This paper aims to describe main drivers and benefits for parties, involved in supporting the NS 2 comparing to Ukrainian perceptions and official statement on this matter.
However, NS 2 is not a unique threat for Ukrainian gas transit capabilities and corresponding resulting benefits. This drives not only necessity of efforts to cope with the NS 2, but also strengthening Ukrainian gas transit capabilities and energy security in general. Authors offered (Final remarks chapter) for Ukraine and its main ally in energy security – US actions frameworks to contain Russia regarding the NS 2 project, strengthen and secure Ukraine
A peer-reviewed article I co-authored that seeks to explain why—despite the potential for gas from Siberia and the Russian Far East to provide greater energy security for Northeast Asia—a decade of negotiations has still not resulted in an agreement to construct the Kovykta pipeline.
Running Head Russian Economy Past, Present & Future Russian Ec.docxtodd521
Running Head: Russian Economy: Past, Present & Future
Russian Economy: Past, Present & Future 11
Russian Economy: Past, Present & Future
By [Name of Student]
Course
Professor
[Name of Institution]
November 04, 2018
Russian Economy: Past, Present & Future
Question 1:
INTERMEDIATE INPUTS
1. -----------SOURCES-------- ------REQUIRED BY-------- -----FINAL USE------------------
Output
Stocks
Imports
Coal
Steel
Machinery
Consumption
Exports
Imports
Coal (tons)
975
10
0
10
500
50
50
100
210
Steel (tons)
2,000
0
20
200
400
1,000
300
100
20
Machinery
100
5
5
20
40
10
20
10
10
Consumer goods
340
10
20
0
0
0
100
100
230
The table shows the 4-sector input-out table of the Soviet economy in 1951.
Does a balance exist? Discuss which sector/s you believe may not be in balance and why (50-75 words)
The given input-output model depicts an imbalance. The output of coal, steel and machinery, as well as the consumer goods were in sufficient, but their final consumption was at the lowest level. The reason behind this maladministration, is the fickle economic policy of the government, which forced the agricultural farmers to work into the industries, and maximize the output, while the available resources were minimum. The concentration towards industrialization by ignoring the agricultural field ruined the whole mechanism.
What options does Gosplan have to bring the system into balance? Which options would be appropriate for each sector that might not currently be balanced? How will this bring about balance? Justify your choice of action. (100-150 words)
Soviet economy was managed by Gosplan, the State Planning Commission, responsible for drawing economic policy based on the input of the market and its advisors
1950s is considered to be a most successful period after NEP, when national income grew as much as 9 percent annually. Prices generally went down.
The major fault came through, was the falsification of presented data to the actual planners and policy makers.
There was a drastic expansion in the output of the consumer goods associated with agricultural in the past (Denton, 1968), but the post war period and the destruction of the cities, debris everywhere urged the Gosplan to forcefully minimize the agricultural farming and maximize the reconstruction and the industrialization of the country, which ultimately became the major mistake. The Gosplan should have focused on the agricultural, while tried its utmost effort on the exports of coal, steel and the machinery. And should have stabilized the production of the consumer goods, as per requirements.
Discuss five of the chief drawbacks to the system of central planning that was in place in the Soviet Union from 1935 - 1965. (250 words)
The central planning system of Soviet Union, usually called "material balance planning" which was to balance the total output with the total input, and by this way, there was an equitable.
Unibros Steel Co.Ltd. is a trading and shipping company based in Cyprus. It was founded in 1988 by Vladimir Delic. With the fall of the USSR in 1988, Vladimir Delic recognized a great opportunity to enter the Russian steel market. At the time, Russian steel was inaccessible to the rest of the world. This was due to lack of proper management, organization, financing and materials.
Soon Unibros Steel became the most prominent player in the region, and throughout the countries if the former USSR. The company grew as an international business network. It set up offices around the world to trade in steel, bulk commodities, and a variety of energy-related products, including oil and gas. From its earliest involvement with the CIS steel producers, the Unibros group had demonstrated success. It employed its understanding of the regional conditions as a means of securing trust. It applied indigenous business practices in order to foster integrity in business partnerships.
By 1995, Unibros turned into one of the largest international metal trading houses in the Commonwealth of Independent States. It had 37 offices worldwide. Its annual turnover of half a billion dollars.
About Russia, Pestel Analysis, FDI inflow and outflow of Russia, Logistics with India, FTA, Leading MNC in Russia in India and Indian MNC in Russia, Major Joint Venture, Relationship with India both Political and Economical, HR Practices of Russia, Environmental Issue in Russia, Trade and Investment Potential of Russia with India
Foreign investment in russia’s hydrocarbon sectorenergystate
Konstantin Simonov’s speech presentation at The International Conference "Russian Oil and Gas: New Trends and Implications".
London, UK, March, 29, 2011.
Russia’s policy towards arctic territories 21.05Елена Волковская
Official paper «Fundamentals of the Russian Federation's state policy in the Arctic for the period till 2020 and Beyond» (2008) establishes the following key features of the Arctic Region:
-remoteness from the main industrial centers;
-high resource consumption and the dependence of economic activities and livelihoods of the population from fuel supplies, food and essential goods from other Russia’s regions;
-low stability of ecological systems and their dependence even from minor anthropogenic effects.
1. The Outlook for Russian LNG
Assessing the outlook for Russian
LNG projects against a backdrop
of sanctions and decline…
Nicholas Cobb
Managing Director / Independent Russia Analyst
Cobb Energy Communications LTD
23.03.2015
2. Introducing CEC…
Cobb Energy Communications (CEC) is an energy sector focused communications,
commodities and technical consultancy offering a wide variety of cost-
effective corporate services.Working with a range of organisations including
the UK Government, major international events organisers as well as small to
medium sized energy companies CEC is pleased to offer a bespoke, cost-
effective and friendly service. Our service specialism includes:
Corporate & Political Communications
Russia & the CIS Corporate Advisory
Sanctions advice
Research and consultancy
UK & Russian Government Relations – Access to Russian
Government, Duma, MFA, Ministry of Energy, Orthodox Church
and Industry
Energy and Commodities Brokerage
Events Management & Production
Project Funding and Deal Facilitation
In-Country Agent Support in the UK, Germany, Canada, Russia & the
CIS
Shale Gas & Gas Contracts Training / Consultancy
Energy Research and Consultancy
For more information please visit www.cobbenergy.co.uk / email
nic@cobbenergy.co.uk
About the Speaker: Prior to founding Cobb Energy in late 2012, Nic
worked for a number of leading events and trade media companies
including the Daily Mail Group, Centaur Media PLC as well as Argus
Media Ltd – a leading hydrocarbon price assessment agency.
Having left DMG Nic setup Cobb Energy as a niche energy sector
communications and events consultancy designed with the client
needs at its heart. Nic has experience of working with senior
leadership teams from across the energy sector including the full
industry chain from upstream operators through to renewable
energy companies and government. In addition CEC offers a
comprehensive commodity brokerage service.
In late 2014 Nic launched the new 'Russian Corporate Advisory
Service' which offers clients an enhanced energy and government
relations service through proprietary contacts including former
Ambassadors, a former UK Energy Minister, senior diplomats as
well as well placed individuals within Russian and UK business. As an
independent energy analyst and Russia watcher Nic has worked with
a range of organisations including the BBC, PR Week, Bloomberg and
others and regularly writeson East-West energy relations. Nic is an
avid Russophile and a Trustee & Director of the Great Britain Russia
Society as well as the Chairman of the Westminster Russia Forum.
In addition Nic is also the Vice Chair of an in inner city school
governing board, and also stood as a candidate in the 2010 election.
3. What will be discussed?
• Overview of East – West energy relations – changing dynamic in serial decline…
• Makeup of the Russian hydrocarbon & LNG sectors…
– Who are the major players?
• Corporate governance – nature of the state-industrial complex
– In search of new markets
– Sanctions and how they impact business operations
• The Crimean Peninsula – stumbling block to future East-West energy cooperation
• Current, planned and projects under construction – overview and project
developments
• What does the future hold for Russian LNG?
• Q&A
4. Overview of East – West energy relations –
changing dynamic in serial decline…
• The summary – poor and declining political – energy – corporate relations with no immediate sign of resolution
• Traditionally strong relations with Western Europe:
– Westerngas supplies /Central & Eastern Europe dependent on Russian natural gas dating back to Soviet times
– Traditionally close post Soviet corporate links with Balkan and Central / East European state
– Westas a major recipient of Russian energy products
– Increasing ties with North American majors in Arctic exploration & knowledge transfer
• What are the factors impacting current relations between Moscow and Western energy relations?
– Ukraine , MH17, Crimea referendum and ongoing situation in Luhansk and Donetsk
– Propaganda and media war – Moscow, Brussels and Washington – difficult to tell the wood for the trees
– Geopolitical factors – Snowden, Syria and NATO-Russia tensions impacting policy making – despite corporate appetite to continue ‘business as
usual’ operationally captive to geopolitical factors and sanctions – commercial slowdownbeholden to political relations
– Traditionally murky corporate governance and historic actions – BP-TNK etc
• Moving ahead?
– Short to medium term slow down in in-country business between Russian and Westerncorporates with business as usual as far as possible
– As an inherently strategic sector – ‘energy’ and LNG may be the last to normalise
– Removal of sanctions may allow European partners and technical providers the chance resume operations but London and Washington may
drag feet for political gain
– Moscow is keen to re-establish commercial links – Russia remains a high risk business environment but requires Western expertise to realise
projects despite improving domestic capacity
5. The Russian Energy & LNG Sectors ‘At a Glance’
Who are the Major Players in Russian
Gas Sector?
• Baltic LNG
• Gazprom
• Itera
• Lukoil
• Northgas
• Novatek
• Rosneft
• Sakhalin Energy
• SeverEnergia
• Soyuzneftegaz
• Surgutneftegas
• Tatneft
• TNK-BP
• TyumenNIIgiprogas
• Yuganskneftegaz
Novatek:
• Russia’s largest independent gas
producer – seventh largest gas
publically traded producer globally
• Founded 1994
• Publically traded company on London
and Moscow Stock Exchanges and
owned by:
– Leonid Miichelson – CEO – 28% share
– Volga Group – 23%
– Total SA – 16%
– Gazprom – 9.4%
• Operations:
– Yurkharovskoye field (full ownership)
– South Tambeyskoye field (full
ownership)
– Termokartskoye field (Part ownership
with Total SA)
– Malo – Yamalskoye field – (Acquired via
purchase of Tambneyneftegas)
– 51% stake in Sibneftegaz (With Itera)
– Joint project with Gazprom in Yamal –
with Total SA
– Developing Sabetta Port in JV with RF
Government
– Host of other companies
• Sanctions:
– Limited access to long term finance
over 90 days
– No interests in Crimea
Russian LNG Operators Case Studies:
Gazprom:
• Headquartered Moscow
• Founded 1989
• State enterprise and owned by RF Government
• Management - state oriented –Chairman - ViktorZubkov
• Number of employees – 393,000
• Global energy company with worlds largest gas reserves
• Market share – 17% global and 72% national
• Currently only producer and exporter of LNG
• Major operations include aviation, banking, production and
exploration, transport and support services
• Major projects include: Nord Stream, Sakhalin II, Shtokman,
South Stream, Yamal Megaproject and producing assets
• International trading arm
• Extensive interest in LNG exports and project development
• Sanctions – subject to major sanctions
Make-Up of Russian Corporate Sector:
• Flat business structure
• Pre-dominance of state interests
• Close tie between business and the national interest
• Good opportunities for the right company
6. Russia in Search for New Gas Markets…
Russia seeks to expand its global gas client base…
• Rapid re-alignment of Russian economy Eastwards
•With increase in US Shale and increased production Russia
looks to Far East and Asia to ensure project viability
• Russia supplies 5% of global market from Sakhalin - aims to
boost to 20% in 2030
•Ukraine – Russia tensions stokes interest for Western regas
terminals
• Russia liberalises export markets – major investments into
Northern projects – e.g. $27bn investment into Yamal
• Northern sea routes open up trade with Asia
•Up to a point will always trade with Western partners but
diversifying exports to include:
• Japan
• South Korea
• China – undetermined impact on US exports
• Major energy cooperation and integration
• $400bn supply deal over three decades
• Major new pipeline projects – Altai & West-
East Pipelines
•On the ‘doorstep’ term supply
• Other Asian buyers
• Change in official attitude – diplomatic re-alignment
7. The Sanctions List…
Types of Sanctions (EU):
• Individuals & Organisations:
– 151 persons and 27 entities linked to Ukraine crisis
– Wide range of organisations including commercial entities
– Ban on all imports and exports to Crimea
• Sectoral sanctions:
• EU nationals and companies may no longer buy or sell new bonds, equity or similar financial instruments with a maturity exceeding 30
days, issued by:
– five major state-owned Russian banks, their subsidiaries outside the EU and those acting on their behalf or under their control.
– three major Russia energy companies and
– three major Russian defence companies.
• Services related to the issuing of such financial instruments, e.g. brokering, are also prohibited.
• EU nationals and companies may not provide loans to five major Russian state-owned banks.
• Embargo on the import and export of arms and related material from/to Russia, covering all items on the EU common military list.
• Prohibition on exports of dual use goods and technology for military use in Russia or to Russian military end-users, including all items in
the EU list of dual use goods. Export of dual use goods to nine mixed defence companies is also banned.
• Exports of certain energy-related equipment and technology to Russia are subject to prior authorisation by competent
authorities of Member States. Export licenses will be denied if products are destined for deep water oil exploration and
production, arctic oil exploration or production and shale oil projects in Russia.
• Services necessary for deep water oil exploration and production, arctic oil exploration or production and shale oil projects
in Russia may not be supplied, for instance drilling, well testing or logging services.
8. Russian LNG Projects and Planned Developments…
Operational…
Sakhalin LNG
Planned…
Baltic LNG Vladivostok LNG
Under Construction…
Shtokman
Projects on hold – Far Eastern LNG
9. Gazprom LNG Projects – Sakhalin II
Sakhalin Overview:
• Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the Sakhalin II project operator –
Parent Gazprom
• The Sakhalin Energy shareholders:
– Gazprom Sakhalin Holdings B.V.(a subsidiary Gazprom – 50 per cent plus one share)
– Shell Sakhalin Holdings B.V. (a subsidiary of Royal Dutch Shell plc. – 27.5 per cent
minus one share)
– Mitsui Sakhalin Holdings B.V. (a subsidiary of Mitsui and Co., Ltd. – 12.5 per cent)
– Diamond Gas Sakhalin B.V. (a subsidiary of Mitsubishi Corporation – 10 per cent)
• Major development project includes 1999 - Present:
– Lunskoye A Installed 2006 with production of 50mn cubic feet of production, 16,000
bls of crude and 50,000bls per day of condensates
– Piltun-Astokhstkoye A Platform – Mothballed 1990 but re-activated 1998 -90,000 bls
of crude per day and 1.7mn cubic meters of associated gas
– Piltun-Astokhstkoye B Platform – Established 2007 - 70,000bls of crude per day
– Extensive E&P activity
– Onshore gas processing facility – NE Sakhalin Island with extensive gas, condensate
and crude processing facilities
– Extensive modernisation of regional infrastructure
– Trans-Sakhalin pipelines – Connects all offshore to processing facility – LNG and
crude export facilities
– Oil export terminal
• Sakhalin II LNG Export Terminal:
– First of its kind in Russia
– Located Prigorodnoye – Aniva Bay and built in cooperation with Japan’s Chiyoda
Corporation / Toyo Engineering Corporation – designed to shout down in case of
seismic event
– Produces 9.6mn tons of LNG per year
– Accounts for 4% of worlds LNG
10. Sakhalin LNG (Continued)
Sakhalin LNG Clients Include (amongst others):
• Kyushu Electric Power Company
• Shell Eastern Trading Ltd
• Tokyo Gas
• Toho Gas
• Korea Gas Corporation
• Hiroshima Gas Co. Ltd
• Tōhoku Electric Power Company
• Osaka Gas
• Chūbu Electric Power Company
• Tepco
• Gazprom M&T – Chartering
• Utilities and Importers in India, Taiwan, UK, Mexico and others
Sakhalin LNG II LNG Includes:
• Two 100,000 cubic metres (3,500,000 cu ft) LNG storage tanks
• An LNG jetty
• Two LNG processing trains, each with capacity of 4.8 million tons of LNG per year
• Two refrigerantstorage spheres, 1,600 cubic metres (57,000 cu ft) each (gross
capacity) for propane and ethane storage
•A diesel fuel system
• A heat transfer fluid system for the supply of heat to various process consumers
• Five gas turbine driven generators with a total capacity of around 129 MW
electrical power
• Utility systems including instrument air and nitrogen plants and diesel fuel systems
• A waste water treatment plant to treat both sewage water and coil-containing
water
11. Vladivostok LNG – Train One2018
The Vladivostok LNG – a National Priority….
• Vladivostok LNG project to be sped up as
a national priority to boost Eastern
exports / boost global market share
• Project is part of the development of the
Unified gas Supply System of Russia
(UGSS) to boost APAC market exports
• Main export target – Japan (Worlds
fourth largest energy consumer)
• Project will include no less that 15mn
tons per year of LNG
– Train ONE – 5mn tones to be
commissioned in 2018 – behind
schedule
– Gas supplied via Yakutia, Irkutsk
and Sakhalin III (major expansion
of Sakhalin gas production)
• Project composition – Gazprom,
Japanese Ministry of the Economy –
Russian Agency for Natural Resources
and Energy
• Current status – feasibility study
completed, MOU’s signed (2012) and
preliminary works underway
12. Baltic LNG & Regas Terminal
The Baltic LNG Terminal ‘At a Glance’…
• To be built close to Ust – Luga seaport – current status is
investment stage
• Being built in cooperation with Government of Leningrad
Oblast – looking for investors to take 49% investment stake
• Supplied with gas from UGSS
• Aim to be completed in 2018 – main markets to be European
(small and large scale) with Latin America designated as
potential targets
• Ensures security of supply to Kalingrad Oblast – good potential
for bunkering and small scale LNG in Baltic region
• Plant to boast 10mn tons of LNG with possible expansion to
15mn tons per year if decision made to expand production
Proposed LNG Regas Terminal – Kaliningrad
• Designed to ensure Kaliningrad’s energy security
– Home of Baltic Fleet
• New terminal will link to underground storage facility at Kaliningradskoye
• MOU signed between Kaliningrad Oblast Government and Gazprom –
planned that late 2017 terminal will be able to receive first deliveries –
total capacity will be 9mn tons a day
• Current status – planning and land allocation
13. Yamal LNG – Sabetta - 2016
Yamal LNG Overview:
• Operator – Yamal LNG – JV with Novatek (60%) / Total (20%) and
CNPC (20%)
• To be supplied by S.Tamboy and Shtokman– one of world’s largest
fields at estimated 3.8 trillion cubic feet of natural gas –
collaboration between Statoil, Total and Gazprom
• Located on Ob River – ice locked for nine months of the year
• Key capacity to include output of 16.5mn tons per year – three LNG
trains
• 5550 workers involved in projects
• Major regional infrastructure inclluding intl. airport, roads and rail
infrastrictire
• Will be largest Arctic development project with 200 wells, 3 LNG
trains and gas storage and processing terminal
• Has spurred development of ice-breaker class tankers – each able
to transport 170,000 cubic meters
• Significant environmental problems – major hurdles to overcome
• Funding – suffering from sanctions – RF Government direct
investment of 150bn Roubles - $2bn in December
• CNPC – Yamal LNG in LNG supply – 20 yr contracted linked to
Japanese Crude Cocktail
• Linked to development of Sabetta Port – JV with RF Government
and Novatek – major hydrocarbonport and settlement
• Status – on track
14. Conclusions…
The Negatives…
• East-West political and business relations to remain strained for some time
• Decreasing appetite for sanctions / sectoral sanctions in areas of Europe
• Russian economy remains volatile as it re-focuses to diversify partners – return to Western focus highly unlikely
• European business remains keen to continue Russian partnerships but hampered by sanctions
• Mind change Eastwards with less emphasis on European and US exports – firm focus on APAC region
• Until Crimea situation resolved energy relations / access to technology etc will remain limited
The Positives…
• Despite differences relatively healthy
• Projects are continuing – many coming on stream in next 3-5 years
• Investment being replaced by Eastern and Chinese partners
• Domestic technical abilities improving
• Moscow still keen to export to W Europe
• Business can still be done – sanctions are largely risk based – domestic governance also improving