LNG Russian Gas Arrives in Boston

The‘Gaselys’ vessel, made by French company Engie, has transported the first batch of liquefied natural gas (LNG) from Russia, and has now arrived in Boston, according to data from the Global Positioning System of Ships.

In early January, the media reported that the United States would supply the first batch of gas from the Yamal LNG plant. The Gaselys vessel was due to arrive in Boston on January 20. However, the day before the expected arrival in Boston, the tanker headed for the Spanish port of Algeciras. Engie later explained the change was due to a trajectory in the weather, noting that the vessel will eventually arrive in Boston.

According to media reports, the United States purchased blue fuel from Russia because of the increase in gas prices on the East Coast of the country to $6.3 thousand per thousand cubic meters. The increase in the cost of raw materials was caused by weather conditions.

The Yamal LNG project envisages the construction of a liquefied natural gas production plant at the resource base in the Yuzhno-Tambeyskoye field. The shareholders are French Total (20%), Chinese CNPC (20%) the Silk Road Fund (9.9%), and Novatek (50.1%) “Russia's largest independent natural gas producer, and the seventh largest public trade company globally by natural gas production volume. The company was originally known as OAO FIK Novafininvest. Novatek is based in the Yamalo-Nenets Autonomous Region in West Siberia, and has a sales office in Moscow”, The project will see the construction of three technological lines with a capacity of 5.5 million tons each, and one with an additional one million tons. LNG production began in December, 2017.

Initially, Novatek stated that the first batch of LNG would go to the Asian market, with a possible buyer being the Chinese CNPC. However, after the launch of Yamal LNG “Novatek” Head, Leonid Mikhelson said that the first batch will go to Novatek Gas & Power. Later, Novatek reported that the consignment will be shipped to the daughter company of the Malaysian Petronas (Petroliam Nasional Berhad - Petronas is the 12th most profitable company in the world and the most profitable in Asia).

Earlier, Energy Minister Alexander Novak said that Russia does not have feelings either way about the delivery of liquefied gas to Boston, since the LNG market is global.

Dimitri Dolaberidze