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| Russia |
| U.S. Urges Russia to Construct Oil, Gas Export Facilities in the Northwest |
| 2004-06-09 |
| June 9 (Bloomberg) -- The U.S. urged Russia, the world’s second-largest oil exporter and biggest natural gas producer, to accelerate plans to build an oil export port and liquefied natural gas terminal in its northwest that could supply fuel to the U.S. OAO Lukoil and OAO Yukos Oil Co., Russia’s two biggest oil producers, lead a $4.5 billion project to build an oil pipeline to Murmansk, an ice-free port on the Barents Sea, to boost oil sales to the U.S. Russian pipeline monopoly OAO Transneft is studying a different plan to build a shorter link to Indiga, east of Murmansk. ``We are very encouraged by’’ Russia’s plans for ``greater export capacity in the northwest,’’ U.S. Deputy Energy Secretary Kyle McSlarrow told reporters in Moscow. ``That is something that will both be good for Russia and potentially will be good for the U.S. in terms of our energy security.’’ Russia raised oil output by about 50 percent over the last six years and pumped more crude in the first five months of 2004 than Saudi Arabia. At the same time, the U.S., the biggest oil consumer, seeks to diversify supplies from the Middle East. Russia and the U.S. are also discussing ways for Russia to start supplying liquefied natural gas to the U.S. after 2010. Russia’s OAO Gazprom is in talks with potential partners such as Exxon Mobil Corp., Royal Dutch/Shell Group and ConocoPhillips to develop the offshore Shtokman field, which has enough gas to supply the U.S. for four years. The project may need $10 billion to $15 billion to produce 20 million tons of LNG a year, according to estimates from ConocoPhillips. McSlarrow met with executives from Yukos, Gazprom and Transneft in Moscow this week. His visit comes 10 days after U.S. Energy Secretary Spencer Abraham came to Moscow to call for an increase of Russia’s energy exports and for the acceleration of Gazprom’s projects to liquefy gas in the Arctic. |
| Posted by:Mark Espinola |