Sabetta

Sabetta (Russian: Сабетта) is the location of a port and LNG plant—Yamal LNG—on the Yamal Peninsula, in the north of Russia along the Northern Sea Route.

Sabetta

Сабетта
Russian icebreaker Tor in the ice-covered port of Sabetta
Location of Sabetta
Sabetta
Location of Sabetta
Sabetta
Sabetta (Yamalo-Nenets Autonomous Okrug)
Coordinates: 71.2733°N 72.0725°E / 71.2733; 72.0725
CountryRussia
Federal subjectYamalo-Nenets Autonomous Okrug

Location

The site chosen for the port is on the western shore of the Ob estuary, on the Yamal peninsula. It is close to, and will serve, the Yuzhno-Tambeyskoye gas field.[1]

Project

The port is a joint venture between Novatek—a large producer of natural gas—and the Russian government. The groundbreaking ceremony was held in July 2012,[2] but construction of the port itself was scheduled to begin in the summer of 2013.[3] The project includes a large LNG plant, capable of producing 16.5 million tons of LNG per year. The port would allow LNG to be exported by sea, year round, from Siberian oil & gas fields. Construction of the LNG plant itself is contracted to JGC and Technip.

A 180 km railway line is being built, connecting Bovanenkovo to Sabetta.[4]

In December 2014, amid the 2014–15 Russian financial crisis, the Russian government gave a 150 billion rouble subsidy to the LNG project.

The port and first phase of the plant were opened by President Putin on 8 December 2017.[5]

According to Novatek on 22 October 2019, the natural gas reserves in the Yamalo-Nenets Autonomous Okrug represent 80% of Russia's natural gas and 15% of the world's natural gas supply.[6]

Transportation

Sabetta International Airport (IATA: SBT, ICAO: USDA) is serving the city. A $3.22 billion proposal for a railway project connecting Sabetta to the broader Eurasian rail network has been approved.[7]

Shipping

The port requires extensive dredging of channels; this is being performed by DEME.[8] Ice also poses serious challenges to shipping. When ice precludes shipping along the Northern Sea Route, then the Fluxys terminal at Zeebrugge, Belgium, will serve Russia as the LNG port for the Asia-Pacific region.[9]

DSME is building fifteen LNG carriers for the project.[10]

As well as LNG exports, some goods imports are expected too; the port plan includes at least one berth for customs inspections of foreign ships.

In 2016 Chemical reactors were shipped from South Korea through Sabetta, on its way to the Pavlodar oil refinery.[11]

Barges of grain will travel 2,000 kilometers down the Irtysh, to be transferred to freighters, for shipment to Japan.[11]

United States sanctions beginning September 2019

Following the 14 September 2019 attack by Iran on Saudi Arabian oil fields at Khurais and Abqaiq (Biqayq in Arabic) during the 2019–2021 Persian Gulf crisis, the United States imposed sanctions under executive order 13846 against several companies including Cosco Shipping Tanker (Dalian) Seaman and Ship Management Company Ltd and the Cosco Shipping Tanker Dalian (大連中遠海運油品運輸有限公司) which are two Cosco Shipping Company subsidiaries that are supporting LNG shipments from Sabetta.[12][13] As of late September 2019, the Joint Venture TC LNG between the Cosco Shipping Tanker Dalian company (50% stake) and the Canadian firm Teekay is the China LNG Shipping Ltd (CLNG) which has more than one third of Sabetta's LNG ice fleet, six ARC7 LNG tankers: Eduard Toll (Russian: «Эдуард Толль»), Rudolf Samoilovich (Russian: «Рудольф Самойлович»), Nikolay Evgenov (Russian: «Николай Евгенов»), Vladimir Voronin (Russian: «Владимир Воронин») all of which are operating, Georgy Ushakov (Russian: «Георгий Ушаков») which is going to Sabetta after sea trials, and Yakov Gakkel (Russian: «Яков Гаккель») which is under sea trials at a South Korean shipyard. Also affected are five ARC7 tankers which Dynagas will supply in a partnership between Sinotrans&CSC and CLNG (25.5% stake), as well as three ARC7 tankers from a joint venture between the Cosco subsidiary Shanghai LNG and Japan's MOL (株式会社商船三井). However, these former five and later three ARC7 tankers are not directly sanctioned but US Office of Foreign Assets Control (OFAC) rules require caution to be exercised in the former. Of the fifteen ARC7 tankers operating out of Sabetta, only Sovcomflot's Christophe de Margerie is not affected by the sanctions. Although these ships have been serviced at Honningsvåg, Norway, this will be phased out and future LNG tanker shipments along the Northern Sea Route may occur between Murmansk and Kamchatka in Russia coastal waters.[14][15][16] On 30 January 2020, the United States lifted sanctions on Cosco Shipping Tanker (Dalian) and its TC LNG.[6][17][18][19]

References
  1. "Russian crisis money for Yamal". Barents Observer. 5 January 2015. Retrieved 12 January 2015.
  2. "Port of Sabetta". Ship Technology. Retrieved 12 January 2015.
  3. "Construction of Sabetta port to start this summer". Barents Observer. 17 April 2013. Retrieved 12 January 2015.
  4. "More details announced for the Arctic Northern Sea Route expansion" (16 December 2014). Siberian Times. Retrieved 12 January 2015.
  5. "Putin opens Russia's $27bn Arctic LNG plant". Russia Today. 2017-12-08. Retrieved 9 December 2017.
  6. "Пресс-релизы и мероприятия: Сообщение ПАО «НОВАТЭК» в отношении танкеров ледового класса Arc7" [Press releases and events: Communication from PAO NOVATEK regarding Arc7 ice class tankers]. Novatek website. Moscow. 22 October 2019. Archived from the original on 22 October 2019. Retrieved 4 January 2020.
  7. Gudjonsson, Heidar; Nielsson, Egill Thor (March 31, 2017). "China's Belt and Road Enters the Arctic". The Diplomat. Retrieved April 1, 2017. The proposed $3.22 billion railway connecting Sabetta Port to the Eurasian railway network was recently awarded Russia’s infrastructure project of the year.
  8. "Sabetta Port Project". DEME. Archived from the original on 6 March 2015. Retrieved 12 January 2015.
  9. News Service (7 April 2014). "Главный газовый проект на Ямале расширяет навигацию. Он получит перевалочную базу в Европе" [The main gas project in Yamal is expanding navigation. It will receive a transshipment base in Europe]. Znak.com (in Russian). Retrieved 4 January 2020.
  10. "DSME beats Hyundai Heavy in shipbuilding performance". Hellenic Shipping News. 6 January 2015. Archived from the original on 2 August 2015. Retrieved 12 January 2015.
  11. Atle Staleseen (2019-07-31). "Ships to sail down great Siberian river, deliver grain to Japan via Arctic route". The Barents Observer. Retrieved 2019-08-02. It is not the first time that shipments are made on the Irtysh to Sabetta and from there further to Asian buyers. In 2016, two 600 ton heavy chemical reactors were sent from South Korea to Sabetta and from there up on the Irtysh to the Pavlodar oil refinery in Kazakhstan.
  12. "China criticizes new U.S. sanctions over Iranian oil deals". Reuters. 25 September 2019. Retrieved 4 January 2020.
  13. "США включили в санкционный список по Ирану китайские компании" [US includes Chinese companies on Iran sanctions list]. Kommersant (in Russian). 25 September 2019. Retrieved 4 January 2020.
  14. "Российский СПГ атаковали рикошетом: Санкции США лишают «Ямал СПГ» трети флота" [Russian LNG ricochet attacked: US sanctions deprive Yamal LNG of a third of its fleet]. Kommersant (in Russian). 1 October 2019. Retrieved 4 January 2020.
  15. "Iran-related Designations; Issuance of Iran-related Frequently Asked Question". United States Department of Treasury. 25 September 2019. Retrieved 4 January 2020.
  16. "Executive Order 13846 (6 August 2018)" (PDF). United States Federal Register Vol 83 No 152. 7 August 2018. Retrieved 4 January 2020.
  17. "США сняли санкции с компании—владельца танкеров для «Ямал СПГ»" [US lifts sanctions on the company that owns Yamal LNG tankers]. Kommersant (in Russian). 22 October 2019. Retrieved 20 January 2020.
  18. "Frequently Asked Questions. Iran Sanctions: Do sanctions on COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. apply to its corporate parent and affiliates?". United States Department of Treasury. 31 January 2020. Retrieved 4 January 2020.
  19. Pamuk, Humeyra; Gardner, Timothy (30 January 2020). "U.S. lifts Iran sanctions on one unit of Chinese shipping giant COSCO". Reuters. Retrieved 4 January 2020.


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