Subscribe free to our newsletters via your
. 24/7 Space News .




ENERGY TECH
Russia unveils $25 bn oil link to Pacific
by Staff Writers
Moscow (AFP) Dec 25, 2012


Russian President Vladimir Putin on Tuesday unveiled the final extension of a new $25 billion oil pipeline to the Pacific that underscores the energy power's gradual shift away from stagnant European markets.

The East Siberia-Pacific Ocean (ESPO) link is also expected to expand sales to the United States and fulfil Putin's dream of cementing Russia's place as a dominant force in international crude markets.

Moscow hopes to turn the price of oil transported through ESPO into a benchmark in the Asia-Pacific region that competes with West Texas Intermediate (WTI) -- the US oil standard whose price some traders believe is too heavily based on domestic political factors.

But analysts worry that Russia may currently lack enough accessible oil in its underdeveloped East Siberia fields to keep the line fully flowing despite strong demand in China and Japan.

"There is just enough East Siberian oil for the existing pipeline," said Sberbank Asset Management energy analyst Valery Nesterov.

"But expanding this pipeline further would be impossible without West Siberian oil -- and that oil is already meant to go west," Nesterov pointed out.

Putin brushed those concerns aside as he joined in the launch ceremony by video link from the Far East city of Khabarovsk.

"By completing the second leg, our potential is expanding," Putin said in televised remarks. "This is a serious event."

The second leg of the 4,200-kilometre (2,600-mile) pipe runs from fields west of Lake Baikal to the Pacific port of Kozmino near the northeastern edge of China.

The port -- previously connected to East Siberian oil fields by rail -- also provides Russia with quick access to Japan and South Korea.

But the head of the Transneft state oil pipeline operator said the lion's share of the crude from the final leg would in fact be destined for the United States.

"The American market will receive 35 percent of Kozmino oil," Nikolai Tokarev said at the opening ceremony in comments reported by the company's website.

"Around 30 percent will go to Japan and 28 percent to China."

Russia has repeatedly tried and failed to make meaningful inroads into the US oil and natural gas markets.

Its gas sales never materialised after the North American shale revolution made both Canada and the United States effectively self-sufficient.

Analysts note that US oil production is also expanding at rates that should see the country outpace Russia and Saudi Arabia in the next few years.

"We can only be talking about a few tankers (going to the United States), and only if they are profitable," said ATON investment house analyst Vyacheslav Bunkov.

But Transneft's Tokarev appeared to be placing his bets on new markets as he dismissed the idea of offering Europe any assurances that the continent could continue to rely on Russian oil.

"We do not owe a single EU country a thing, and we are certainly not obligated to account for ourselves," RIA Novosti quoted Tokarev as saying.

The pipe's first leg had until now pumped 30 million tonnes (220 million barrels) of oil per year from Eastern Siberia to the Chinese border town of Skovorodino.

Half of that oil went along an existing pipeline to the Chinese city of Taishet, while the other was transported by tanker car to Kozmino.

The extension will allow Russia to boost output along the first half of the link to 50 million tonnes (367 million barrels) per year.

China will continue to receive its 15 million barrels while the remaining 35 million barrels will be distributed among various clients at Kozmino.

Transneft's Tokarev said sales to markets besides China had to reach 30 million barrels before ESPO became a meaningful international benchmark.

"If this happens soon, we can safely say that the world has obtained a new grade of oil -- one that we can be proud of."

.


Related Links
Powering The World in the 21st Century at Energy-Daily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








ENERGY TECH
Iraq agrees to extend oil pipeline through Jordan
Amman (AFP) Dec 24, 2012
Iraq and Jordan agreed on Monday to extend an oil pipeline to the Red Sea city of Aqaba for the export of Iraqi crude, Prime Minister Nuri al-Maliki said after a fleeting visit to Amman. "It was agreed to extend an oil pipeline across Jordan to Aqaba to export Iraqi oil and satisfy Jordan's crude requirements," the Iraqi premier told journalists, saying this would "end the transportation of ... read more


ENERGY TECH
GRAIL Lunar Impact Site Named for Astronaut Sally Ride

NASA probes crash into the moon

No plans of sending an Indian on moon

Rocket Burn Sets Stage for Dynamic Moon Duos' Lunar Impact

ENERGY TECH
Clays on Mars: More Plentiful Than Expected

Opportunity For Some Shoulder Workout At Copper Cliff

Enabling ChemCam to Measure Key Isotopic Ratios on Mars and Other Planets

Curiosity Rover Explores 'Yellowknife Bay'

ENERGY TECH
NASA Puts Orion Backup Parachutes to the Test

White House to honor scientists, inventors

TDRS-K Arrives at Kennedy for Launch Processing

Sierra Nevada Corporation Selected by NASA to Receive Human Spaceflight Certification Products Contract

ENERGY TECH
Mr Xi in Space

China plans manned space launch in 2013: state media

China to launch manned spacecraft

Tiangong 1 Parked And Waiting As Shenzhou 10 Mission Prep Continues

ENERGY TECH
Expedition 34 Spends Christmas in Space

Three astronauts blast off for ISS in Russian craft

Soyuz rocket brings trio to space station

ISS Orbit Raised Ahead of Crew Arrival

ENERGY TECH
Ariane 5 ECA orbits Skynet 5D and Mexsat Bicentenario satellites

Payload integration complete for final 2012 Ariane 5 mission

Arctic town eyes future as Europe's gateway to space

ISRO planning 10 space missions in 2013

ENERGY TECH
Closest sun-like star may have planets

Nearby star is good candidate for Earth-like planets

Venus transit and lunar mirror could help astronomers find worlds around other stars

Astronomers discover and 'weigh' infant solar system

ENERGY TECH
Amazon outage disrupts Netflix service

Acer said to be readying $99 tablet

Toy companies 'terrified' of tablets

Rumors tip lighter, thinner Apple iPad




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement