Russia mulls increasing Arctic oil, gas export infrastructure

Russia may build new infrastructure for oil and gas exports along the Northern Sea Route at the Arctic ports of Indiga and Murmansk, deputy energy minister Pavel Sorokin said April 19.

Sorokin's comments come as Russia seeks to increase deliveries to some Asian countries, following its invasion of Ukraine and sanctions that have resulted in a significant drop in deliveries to Western countries.

"We see great potential for the use of new locations, such as the port of Indiga, and potentially Murmansk, as an additional transshipment point," Sorokin said during a meeting on strategic approaches to development of the Northern Sea Route at the Federation Council, according to a ministry statement.

"Or even installation of pipeline oil and potential gas infrastructure there in order to not only improve the socio-economic situation in the region, but also create more flexibility for our export system," Sorokin said.

Russia has long aimed to capitalize on its vast resources and strategic location to cater to increasing demand in Asia.

The Northern Sea Route is a key element of this strategy, linking vast resources in the North and East of Russia with European and Asian markets via Arctic waters.

Warming temperatures are facilitating development of shipping via the route, although there are major concerns about the ecological impact of shipping and infrastructure development in the region.

Key supply projects for the route include Novatek's 17.4 million mt/year Yamal LNG project. Novatek is adding to that capacity with the 19.8 million mt/year Arctic LNG 2 project due to start up its first train in 2023.

Rosneft's major Vostok Oil project also relies on the route. The company said previously the project may supply 25 million mt, or around 500,000 b/d, of oil to global markets in 2024.

Sorokin said April 19 that oil and gas shipments will continue to be the main source of growth in deliveries via the Northern Sea Route in the mid-term.

Sorokin also said Russia will remain a key player in the global energy market.

"Without our country, without our resources, without our competencies and participation, it is impossible to imagine the global energy sector. And it should always remain so," Sorokin said, during the national oil and gas forum