Russia has set up a site in the Baltic Sea to allow it to move subtle fuels from one shipment to another in a bid to triumph over a tight oil market ahead of the start of European Union sanctions.
The site, near the port of Ust-Luga, will allow fuel transfers, adding diesel, from one shipment to another, according to an online page of Rosmorport, the national firm to regulate and offer maritime facilities in the country’s seaports. . Its creation was ordered through the Russian Ministry of Transport in September.
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The International Energy Agency said Wednesday in its oil market report that the strategy will allow small tankers to discharge into larger ones that can then send the fuels farther away.
Historically, most of the Russian diesel from the port of Primorsk, the country’s main Baltic export facility, has gone to Europe in cargoes of around 30,000 tonnes. Distance trading, are the maximums likely to be necessary.
The ship-to-ship site, or STS, will allow those shipping backlogs.
READ: Shipowners rush to find tankers for Russian oil this winter
It’s unclear to what extent the technique will also help Russia deal with an imaginable shortage of tankers built for freezing conditions.
Ust-Luga reports ice situations later than Primorsk, according to Richard Matthews, head of studies at E. A. Gibson Shipbrokers Ltd.
This means that, for some time, ice-class tankers will potentially be able to ship fuel from the more complicated ports to close Ust-Luga for an STS transfer, rather than sending it to its final destination.
Still, Ust-Luga can revel in ice in winter.
And with more Russian cargoes shipped longer distances, for raw and subtle fuels, the strain on ice-adapted ships will increase unless a solution is found.
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