Russian state-owned Gazprom has started the direct-rail shipments of liquefied petroleum gas (LPG) via a new bridge to the Crimea peninsula which could cut transportation costs significantly.
According to data from Refinitiv Eikon, in August only, Gazprom supplied roughly 2,200 t of LPG via the bridge to Crimea, mostly from its plants in Russia. Each year, Gazprom as Crimea’s main LPG supplier ships 50,000-60,000 tpa of product, covering 93-95% of its demand.
According to Crimean Railway, direct-rail deliveries from Russia to Crimea could slash transportation costs by approximately 20-37%. Gazprom was said to make the test shipments last month. At the moment, the company is waiting for the rail tank-cars to return and the assessments the economics and the comparison with the cost of ferry shipment would commence.
Previously, LPG was delivered to Crimea via the Kavkaz-Kerch ferry by rail tank cars or by trucks. So far this year, the LPG ferry supplies to Crimea stood between 3,100-3,200 tpm, compared to 3,700-3,800 tpm in 2017-2019.
The road-to-rail bridge’s construction by Russia was opposed by Ukraine and is under the EU sanctions, banning European citizens and companies from investing in the annexed peninsula, including its transport and infrastructure.
