Tag Archives: Far East

ExxonMobil freezes Far East LNG project

April 4 2022
ExxonMobil has frozen the Far Eastern LNG project in the port of De-Kastri, Governor of the Khabarovsk Territory Mikhail Degtyarev said on the air of the Komsomolskaya Pravda radio station.
As reported earlier, Exxon Neftegaz Limited (ENL, subsidiary of ExxonMobil, operator of the Sakhalin-1 project) launched a tender campaign in February 2022 to select contractors for the Far East LNG project. The company announced the search for contractors to assess the quality of building materials, as well as the search for manufacturers of reinforced concrete products.
The construction of an LNG plant with a capacity of 6.2 million tons per year in the area of the village of De-Kastri in the Khabarovsk Territory is planned to monetize gas reserves on the Sakhalin shelf as part of the Sakhalin-1 consortium.
The cost of the Far East LNG project, according to the Ministry of Energy, is estimated at $4.2 billion. The launch is scheduled for 2027-2028.
On March 2, ExxonMobil announced its withdrawal from the Sakhalin-1 project, refusing to invest in Russia “in response to recent events.” The Sakhalin-1 project involves ExxonMobil – with a share of 30%, SODECO (Japan) – 30%, Rosneft – 20%, ONGC (India) – 20%. The total reserves of the project fields are estimated at 307 million tons of oil and 485 billion cubic meters of natural gas.
Source: https://portnews.ru/news/327533/ 

Russia proposed resumption of the Khasan-Rajin project 

3 November 2021

According to South Korean Yonhap, Russia is considering the resumption of the Khasan-Rajin project: “Russia wants to cooperate with North and South Korea on resumption of a cross-border logistics project in its Far East after pandemic restrictions are lifted. Russian Far East Development Minister Alexei Chekunkov called on the parties to hold consultations on creation of a railway network between Russian Khasan station and North Korean port of Rajin and development of this port. 

Discussions on the project began over 10 years ago. It provided for the transportation of containers and raw materials from Russia to South Korea through the North Korean port of Rajin. But the prospects of the project are still uncertain.

“Trilateral cooperation can benefit everyone. Everything is simple in logistics. If you have a shorter route, it makes sense to use it. I look forward to the resumption of work on this project and I believe that the key aspects of the project will overcome any existing difficulties”, Chekunkov is cited by Yonhap.

Source: https://seanews.ru/2021/11/03/rossija-predlozhila-vozobnovit-proekt-hasan-radzhin/

Plans to Build a New Railway Line from Yakutia to Magadan

19 August 2021

A joint expedition will take place to survey a route for a new railway line connecting Nizhniy Bestyakh (Sakha – Yakutia) with the city of Magadan on the coast of Okhotsk Sea. The stages of project implementation were discussed by the heads of ministries and representatives of the railway industry at the meeting chaired by Andrei Tarasenko, Chairman of the Government of Yakutia, reported the press service of Yakutia government.

Experts will determine where to lay the railroad and in which settlements to build railway stations. Preliminary, the length of the railway from the operating line Berkakit – Tommot – Nizhniy Bestyakh to Magadan will be more than 1.8 thousand km.

“It will not be a part of BAM or TSR, but one more new railway line going to Pacific coast. This is a large logistics project. First, such a railway line will reduce the cost of delivering resources to the northern regions. We will no longer be dependent on river navigation and winter roads. Secondly, the railway will provide an opportunity for small and medium-sized businesses to develop and create additional jobs. This means more tax revenues to local and regional budgets,” said Mr. Tarasenko.

Maxim Lebedev, Deputy General Director of the Institute for Transport Economics and Development (JSC), noted that following the results of the expedition, the institute would prepare a preliminary investment feasibility study for the construction of the railway. The terrain specifics, presence of natural protected areas, length, presence of a sufficient cargo base and others are among the criteria for railroad construction  study.

The development of the railway infrastructure in the eastern part of Russia is a strategic goal, outlined by President Putin. As a whole, it is associated with the second stage of the expansion of the BAM and TSR, the major railroads in Russia. The construction of the new railway will also ensure the availability and development of industrial projects in the Far East and the Arctic zone.

Source: https://portnews.ru/news/317343/

FESCO Started Seasonal Cargo Transportation to Chukotka

August 3, 2021

FESCO has started seasonal cargo transportation from the ports of China and the USA to Chukotka as part of the FESCO “Arctic Line” (FAL) container liner service.

The first ship departed on August 1 on the route Taitsang (PRC) – Provideniya – Pevek – Provideniya – Yantai (PRC). It will transport over 14 thousand tons of cargo, reported the FESCO press service. The operation of the line will be provided by multipurpose ice-class vessels ‘FESCO Ulysses’ and ‘FESCO Paris’, which will make four voyages from July to October inclusively and will deliver about 45 thousand tons of cargo. In China, the ports of call of the line are Qingdao, Taitsang and Yantai, in the USA – Everett, and in the Far East of the Russian Federation – Provideniya, Pevek, Vladivostok, Vostochny.

More than 1 thousand TEUs, as well as about 10 thousand tons of flotation concentrate was transported in 2020 in the framework of FAL. It complements the existing service of the FESCO “Anadyr Direct Line” (FADL), connecting the port of Vladivostok with the ports of Chukotka – Anadyr and Egvekinot.

FESCO Transportation Group Is one of the largest private transport and logistics companies in Russia with assets in the port, railway and integrated logistics business. FESCO’s diversified portfolio of assets allows for door-to-door delivery of goods and controls all stages of the intermodal transport chain. The group owns the Vladivostok Commercial Sea Port, the “Transgarant” railway operator, and the “Russian Troika”, an operator of fitting platforms. FESCO operates dry terminal complexes in Novosibirsk, Khabarovsk and Tomsk. The Group manages about 50 thousand containers; the fleet of fitting platforms is more than 7 thousand units. The Group’s ship assets include 18 transport vessels, which mainly operate on its own sea lines.

Source: https://portnews.ru/news/316546/