Russia Economy Thread

gelgoog

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Russia has produced 9 gas turbines for the three compressor stations in Power of Siberia this year. Once installed and operational the additional pumping capacity should enable increased gas flow through the pipeline into China.

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06/22/2022

Gas turbine units "ODK-PM" shipped for the gas pipeline "Power of Siberia"​

In early June, JSC UEC-Perm Motors (part of the Rostec United Engine Corporation) shipped six sets of GTU-25P for the needs of Gazprom Transgaz Tomsk.

1.jpg

GTU-25P in the assembly shop of UEC-Perm Motors

The Perm gas turbine units with a unit capacity of 25 MW are designed to equip the compressor stations of the first stage at CS-3 Amginskaya and CS-7 Sivakinskaya.

Earlier, in February of this year, the delivery of three GTU-25P for the compressor station of the first stage of CS-1 "Saldykelskaya" was completed. All nine units for compressor stations of the first stage are part of the Power of Siberia gas pipeline at the Chayanda-Blagoveshchensk section.

UEC-PM plans to manufacture and supply nine more sets of GTU-25P for compressor stations of the second stage at CS-1 Saldykelskaya, CS-3 Amginskaya, CS-7 Sivakinskaya.

“We value the trust of the customer and are working to improve the performance of gas turbine units. Their high quality is proven by many years of operation. Understanding the national importance of the Power of Siberia project, Perm engine builders are doing everything possible to ensure reliable and uninterrupted operation of the equipment,” said Sergey Kharin, Executive Director of UEC-Perm Motors.

The GTU-25P gas turbine unit with a capacity of 25 MW (developed by JSC UEC-Aviadvigatel, part of the Rostec United Engine Corporation) was created on the basis of the PS-90A aircraft engine gas generator and recognized by experts as the most highly efficient drive.
 
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gelgoog

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06/22/2022

Builders completed the tunneling of the Kerak tunnel​

In the Amur Region, builders have completed the drilling of the Kerak Tunnel on the Kovali-Ulruchi section of the Trans-Siberian Railway. Completion of its construction will allow unloading one of the busiest sections of the Trans-Siberian.

As EastRussia was told in the regional government, the tunneling was completed in just 11 months, which is considered a tight deadline. The length of the future engineering structure is 926 meters. About 500 people, more than 70 units of various equipment work around the clock at the facility. Work is being carried out simultaneously from two portals.

The current Kerak Tunnel was built in 1910, it runs in a zone with flooded soils. The new tunnel is being built using modern technologies, it will be protected from water as much as possible.
 

gelgoog

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That TheDiplomat article...
"forcing Moscow into a longer war of attrition than it had planned for"
It is funny how they always know these plans the Kremlin never announced in first place. And sorry, but the grand strategy isn't in some rolls of paper which can be lost inside Ukraine. They are under lock and key at Stavka.

"Gazprom is cutting deliveries to EU importers and Turkey"
Never heard of gas supplies to Turkey being cut. And for EU countries who stole Russian forex reserves in Euros in EU banks, and stole Gazprom property, they are lucky to get any gas at all. Better pay in rubles. You yourselves made Euro worthless. And Russia might just flare all that gas, if you think they care. I think they have 100 years worth of reserves. And that is in the fields where gas is being pumped from. Not fields to be explored. Even heard of the Gates of Hell in Turkmenistan? They might even turn the flaring of the gas at Yamal, which used to go to Europe, into a tourist attraction.
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"in late June the export of Kazakh crude via the port at Novorossiysk was suspended. The suspension was said to be temporary, to allow for demining, but came just days after Kazakh President Kassym-Jomart Tokayev asserted that the Kazakh government would not recognize the Luhansk and Donetsk People’s Republics as legitimate states while sitting next to Russia’s Vladimir Putin on a stage at the St. Petersburg International Economic Forum."
Yeah. I think that was 1 million barrels of Kazakh oil per day. Gonski. Oops. Perhaps Tokayev should remember next time who saved his neck in the last coup.

"Gazprom has not notably increased natural gas deliveries to China via the Power of Siberia pipeline, a pipeline with an annual capacity of 38 bcm, despite the loss of market share in Europe."
It went from close to zero to quadruple that in a year. And will likely double this year and double again next. And the pipeline can take more than that if Russia increase the pressure on the pipes. And they announced it can be done. Together with Power of Siberia 2 extension from Vladivostok to China that might be close to another 15-20 bcm.

"Preparatory talks and works are still taking place for Power of Siberia 2, a pipeline that would run through Mongolia to China with a capacity as high as 50 bcm."
Actually that was renamed to Soyuz Vostok pipeline. i.e. Eastern Brotherhood.
And it can be built quicker than the US and/or Qatar can ramp up similar gas capacity to Europe. Assuming they could even transport and unload that LNG.

"Pipelines take a long time to build"
So do gas liquefaction plants, LNG tankers, FSRU facilities, and ports.
Last I heard the Freeport LNG facility in the US blew up and was expected to only come back fully online in late December after initial claims of September.
So LNG is not trouble free either. And has multiple points of failure.
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"Although works for Novatek’s Arctic-2 LNG project continue, sanctions are beginning to increase costs and delay project times for the company in general. Gazprom is now seeing European partners for the Baltic LNG project bail, throwing it in doubt."
No. Arctic-2 LNG stopped basically. There might be modules still being put into place but some of the modules to be installed were being build in Chinese shipyards by EU contractors. And they froze construction of the modules because of the sanctions. Baltic LNG makes little sense unless new markets show up. Which is highly doubtful in near term since EU is basically gobbling up all LNG resources at inflated prices. They are going to have fun getting them all until they see the bill. They probably expect not to pay like they did with Russia. But you can bet the US will gets its bucks.

"the loss of European markets is by no means fatal for Russian crude exports in the short term"
Not what the EU announced originally though.

"Nearly all – 97 percent – of seaborne crude tankers from Russia headed to India in April-May were insured by firms in the U.K., Norway, and Sweden, all parties to the insurance/reinsurance ban that has now taken effect. The loss of these providers will buoy the discounts Russian firms will have to offer buyers."
What, you think Russia cannot find other insurers or self-insure? So you think Russia has less capital than any of these countries? Moronic. Moscow has more people than all of Sweden.

"Worse, declining European imports will eventually mean reduced purchases of Russian diesel. There’s little scope to export diesel to Asian markets."
Boy they are wrong. Most island nations, tropical countries, and a lot of African countries cannot refine their own diesel. If the EU isn't buying the diesel from Russia, they have to get it from someone else, do you think those people, poorer nations, will be out of diesel out of solidarity to the EU? Nope. As is the US is quietly buying Indian diesel made from Russian oil and even Russian aviation gas direct on the sly. So if the US is getting the Indian diesel, where is India getting it's diesel? Are their diesel trains running on cow manure? These geniuses never managed to put 2 and 2 together.

"declines in natural gas volumes exported to Europe going back to last year helped drive up coal prices. That, in turn, led Chinese authorities to commit to this year’s coal push, which will significantly lower the ceiling for potential coal exports form Russia to China in years to come."
Nope. Colder winter than usual and less production than previous year in China resulted in shortage. Nothing to do with European coal price. These people always think the world revolves around them.

"These new trade flows ultimately depend on selling at prices below the market rate realized elsewhere. That works when prices are high. They won’t stay high forever, as recession risks in the U.S. and Europe grow and China’s growth for the year weakens."
Nice try. Global oil consumption was already close to bottom because of the COVID-19 lockdowns. Good luck continuing that level of economic activity as in the lockdowns in the West. Perhaps with another year or two, nope, more like a decade or two of QE and handouts so people don't get thrown out into the street after being unable to either go to work, or pay their mortgage? Or perhaps don't give handouts, and get to 20% unemployment, and soup lines, and tent cities, like in Great Depression? Oh sorry, I forgot, the tent cities and bread lines are already here.
 
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