Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Draft Strategy Sees Russia's Oil and Gas Flow to Asia Doubling

Russia plans to at least double its oil and gas flows to? Asia? over the next 20 years, a draft of its energy strategy showed on Friday, part of a pivot away from export routes to Europe.

Russia's energy sector is undergoing a dramatic transformation, with oil flows being redirected to? Asia via the? East Siberia-Pacific Ocean pipeline? and the gas sector boosted by a partial end of Gazprom's export monopoly.

In a document published on its website, the? Energy Ministry? said one of the country's goals was to diversify its exports, with the share of oil and oil products sent to? Asia? doubling to 23 percent by 2035.

By then,? Russia? aims to ship a total 32 percent of its oil to? Asia, the? Energy Ministry? said, with gas rising to 31 percent from 6 percent.? Europe? is now? Russia's main gas export market.

Russia? sent about 16 percent of its total oil exports to? Asia? last year and is exporting gas to? Asia? only from the? Sakhalin-2 LNG plant, which has total annual capacity of 10 million tons.

"Energy markets in? Europe? and the Commonwealth of Independent States will remain major export markets for Russian energy goods but export volumes after 2015 will decline to stay at 95 percent of 2010 levels by [2035]," the document said.

A ministry spokeswoman said Friday that the document was a draft and a final version was expected to be published and approved later this year.

State-owned energy company Rosneft, which became the world's top listed oil producer by output last year, is leading the shift eastwards, preparing to triple oil exports to? China? in coming years to more than 1 million barrels per day.

Along with Novatek, both are eyeing fast-growing Asian markets to ship super-cooled gas close to the end of this decade, after the government limited state-owned Gazprom's control over gas exports to those sent via pipelines.

Russia? is now pumping oil near capacity of about 10.5 million bpd and a rapid increase is unlikely until the production of tight oil starts. The process will need at least five years, officials and analysts say.

Officials have said that increased exports to? Asia? will not hurt European clients because of new fields will come on stream in coming years.

Russian oil exports declined by 2.5 percent to 228.5 million tons in 2013, according to? Energy Ministry? data, falling further to 225 million tons, or 4.5 million bpd, this year due to refinery upgrades.

The document also showed that? Russia? plans to cut heavy oil export to 20 million tons in 2035 from 57 million tons in 2010 and increase shipments of motor fuels to 58 million tons from 44 million tons.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more