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Northern Sea Route coal export shipments may start by 2025 — deputy minister

"In the Arctic basin there are coal companies that plan to produce coal, and their practically entire exports will be focused on the Northern Sea Route," Russia's Deputy Minister of Energy Sergey Mochalnikov said

MOSCOW, October 13. /TASS/. The Arctic may become an additional transport route for Russian coal producers. Export shipments along the Northern Sea Route may begin by 2025 already, Russia's Deputy Minister of Energy Sergey Mochalnikov said in an interview with TASS during the Russian Energy Week.

"In the Arctic basin there are coal companies that plan to produce coal, and their practically entire exports will be focused on the Northern Sea Route," he said. "First shipments there are due to start by 2025 already."

This option is what the buyer and seller decide: if they consider the logistics cost appropriate and acceptable, then this is the route, he said.

"The total cost of coal production and delivery along the route should be acceptable for the companies. There are many variables here, but we are also considering this route. Of course, the Arctic, taking into account a number of factors, may become an additional transport route for our coal miners," the deputy minister said.

The key market is the Asia-Pacific Region and the global South, he continued. Another route there is through the Black Sea and the Indian Ocean or through the Baltic - all the routes are optional. "They strongly depend on the product, on coal's specifics and cost, and on the size of a bulk carrier that delivers it. Every day coal companies are working on all these routes, they analyze new operators, new routes and, accordingly, new consumers," he stressed, adding shipments through the Baltic and Black Sea ports may both grow or decrease due to various conditions.

TASS is the Russian Energy Week's information partner.