Deputy PM: Russia’s oil exports to friendly states up 76% in 2022

MOSCOW, Jun 8 (PRIME) -- Russia’s exports of oil to the friendly countries jumped by 76% on the year in 2022, while exports of oil products rose by 20% and of pipeline and liquefied natural gas (LNG) gained 8%, Deputy Prime Minister Alexander Novak said in his opinion piece published in the Energeticheskaya Politika (Energy Policy) magazine on Thursday.

Infrastructure allowed Russia to redirect its energy exports swiftly, he said.

“In May 2022, Russian oil supplies to the Asian countries topped the volumes sent to Europe for the first time ever. In 2022, the growth of oil exports to the friendly countries amounted to 76% year-on-year, of oil products to 20% year-on-year, and of pipeline gas and LNG to 8% year-on-year. In total, we redirected almost 40 million tonnes of oil and oil products to the Eastern markets from the Western markets last year,” he said.

Oil exports to India jumped by 19 times to 41 million tonnes in 2022 as compared with 2021, while coal exports tripled to 20 million tonnes, and exports of oil products doubled to 6.2 million tonnes.

Exports of pipeline gas to China rose by about 50% to 15.4 billion cubic meters, of LNG grew by 35.2% to 6 million tonnes, of oil by 28% to 89 million tonnes, and of coal by 25% to 67.1 million tonnes. Exports of power to China hit a record of 4.7 billion kilowatt-hours last year. This year, exports of pipeline gas to China should rise by 43% to 22 billion cubic meters, and the countries continue working on another exports pipeline through Mongolia that would raise the export capacity by 50 billion cubic meters more, Novak said.

Oil major Rosneft also confirmed an order for pumping 30 million tonnes of oil to China through the Skovorodino–Mohe pipeline in 2023, he said.

Russia received more than 20 requests from different countries, mainly Asian, for supplies of oil, oil products, and LNG in 2022, meaning Moscow can expand the geography of its exports further, the deputy prime minister said.

“In order to ensure unimpeded access of Russian crude to the markets, we are considering creating a new system of clubs for mutual insurance and reinsurance of risks to third parties, or protection and indemnity insurance, together with the friendly countries. Its main advantages are independence from the insurance and banking services of unfriendly countries, stability, and scalability on all types of supplies,” he said.

Russia is also discussing new long-term LNG contracts with the Asia-Pacific countries and equity participation of Asian investors in Russian LNG projects. The LNG plants that Russia plans to build in the Yamal Peninsula will drive the country’s LNG production capacity to 100 million tonnes in 2030. Combined exports of LNG and pipeline gas to the East should jump to more than five times to 170 billion cubic meters in the year as compared with 2021, Novak said.

Also, Moscow is working on industrial cooperation with Indian companies to upgrade and construct thermal power plants in India.

Russia is also interested in partaking in the energy projects in Vietnam and Bangladesh, including the renewable energy sector, he said.

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