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Russia to increase its oil and gas movements to Asia

24th January 2014

Russia intends to double its oil and gas flows to Asia over the next 20 years with the purpose of moving away from routes to Europe

Russia to double oil and gas flows to Asia

Russia plans to, at minimum, double its oil and gas flows to Asia over the next 20 years, which it is doing in order to move away from export routes to Europe.

Currently, Russia's energy sector is going through major changes, with oil flows being relayed to Asia through the East Siberia-Pacific Ocean pipeline and the gas sector enhanced due to the semi-conclusion of Gazprom's export monopoly.

Russia’s Ministry of Energy said one of the country’s goals was to “diversify its exports,” with the intention of increasing the share of oil and oil products that are sent to Asia by doubling them to 23 per cent by 2035.

The Ministry of Energy stated that their objectives also include shipping a total 32 per cent of its oil to Asia. Currently, Europe is Russia's main gas export market.

Russia sent about16 per cent of its total oil exports to Asia last year and is shipping gas to Asia solely from the Sakhalin-2 LNG plant, which has a total annual capacity of 10 million tonnes.

Rosneft, Russia’s state owned energy company, became the world's top oil producer by output last year and is leading the shift eastwards, with the plan to triple oil exports to China in to over 1 million barrels per day (bpd).

Rosneft in addition to Novatek, a Russian natural gas producing company, are looking at the Asian markets to ship super-cooled gas close to the end of this decade.

Russian officials have stated that increased exports to Asia will not affect their European clients because new fields will be explored in the next few years.

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