Russia looks to Japan icebreaking tankers to unlock Arctic gas

The journey from Sabetta to the south of Kamchatka is at least 3500 nautical miles. Assuming 12 knots speed (how fast can they go in ice) it takes 12 days to get to the reloading hub. then there is some more marine transport to cover. Lets put some numbers in. USGC to NWE takes about 10 days and is about 1,2 to 1,5 USD / MMBtu. But those are normal tankers. The Russians need to use ice breakers and those are more expensive. How much? Double. Let’s use double. Then the reloading hub – slap a dollar on top and then further transport to the destination for anything between 0,5 to 1 USD. We are at USD 5 for transport alone. At current prices, someone loses quite a lot of money here.

Linkedin Thread