• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 11 hours Indonesia Stands Up to China. Will Japan Help?
  • 4 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 13 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 14 hours Trump capitulated
  • 5 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 18 hours Three oil pipeline projects inch toward goal-line for Canada
  • 22 hours The Libyan Oil in a Sea of Chaos, War and Disruptions
  • 2 days Trump has changed into a World Leader
  • 16 hours Yet another Petroteq debt for equity deal
  • 12 hours US Shale: Technology
  • 7 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day OIL & GAS LOSSES! Schlumberger Posts $10B Loss in 2019
  • 13 hours Gravity is a scam!
  • 2 days Iranian government can do everything to avoid attacking American people.
Oil Will Stay Above $50 Per Barrel In 2020

Oil Will Stay Above $50 Per Barrel In 2020

Energy markets have started the…

Russia’s Lukoil Ships Arctic Oil To China In Unusual Trade Flow

Arctic Crude

The trading arm of Russia’s second-largest oil producer, Lukoil, has sold a crude oil cargo to the trading unit of the China National Petroleum Corporation (CNPC) in a rare trade route in the Arctic, Reuters reported on Wednesday, citing shipping data from Refinitiv and two industry sources.

Lukoil’s trading unit Litasco sold a cargo of the Varandey blend to CNPC’s trading arm Chinaoil and the oil tanker, Korolev Prospect, made the voyage via the Northern Sea Route (NSR) from Murmansk to the Chinese port of Dongjiakou—a rare shipment to China via the Arctic instead of via the Suez Canal.

Warm summer allowed for tankers to travel through Arctic waters which are frozen for most of the year. The route via the Arctic is two times shorter in terms of nautical miles than a tanker voyage from Murmansk to a port in China via the Suez Canal, according to Refinitiv data cited by Reuters. The rare shipment via the Arctic was also made possible by the firmer prices of the key Russian blend ESPO preferred by Chinese independent buyers, which made the arbitrage via the Arctic route work, the sources told Reuters.   

The tanker that traveled through the Northern Sea Route, Korolev Prospect, completed the voyage from Cape Zhelaniya to Cape Dezhnev in Russia’s Arctic waters using liquefied natural gas (LNG) as fuel—the first time in the history of shipping that a large-capacity oil tanker has crossed the full length of the Northern Sea Route using only cleaner-burning LNG fuel, Russian shipping firm Sovcomflot said in early September.

The arbitrage for the Arctic route to China has closed since Korolev Prospect made the voyage between end of August and mid-September, and shipments could resume next year, a source familiar with Litasco’s export plans told Reuters.

Russia has been continuously growing its oil exports to China, but in recent months, Saudi Arabia has been China’s top oil supplier as the Kingdom has been significantly boosting exports to the Asian market at the expense of slashing shipments to the most transparently reported market, the U.S. For a second month in a row, Saudi Arabia was China’s biggest oil suppler in August, but the attacks on Saudi oil infrastructure last month could change that in the September data.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News