China-Russia Cooperation: Russia launches LNG plant with China

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Turning to the Arctic coast of Russia's Yamal Peninsula now, where the first shipment of liquefied natural gas has been made from a brand new LNG plant, co-owned by Russia, France and China. Our correspondent Daria Bondarchuk tells us more about the new project, that's fuelling Russia's ambitions to become the world's largest LNG exporter.

Russia has sent its first cargo of liquified natural gas from its new Yamal LNG plant in the Arctic. At -22C below zero, Russia's President Vladimir Putin has personally overseen the first dispatch - as 'Christof de Marjeri' ice-breaking tanker, defying severe Arctic conditions, set sail from the port of Sabetta.

VLADIMIR PUTIN RUSSIAN PRESIDENT "This is an extremely important sector for Russia. This is not just an important event in our country's energy sector, or gas production and liquefaction. This is a more ambitious project. What I mean is that we are faced with the enormous task of developing the Arctic and the Northern Sea Route."

The $27 billion Yamal LNG project, initiated in 2013, was co-sponsored by Russia's Novatek, China's CNPC and the Silk Road Fund, and France's Total. The first stage is designed to produce 5,5 million LNG tonnes per year.

They will be delivered across ice-covered waters of the Arctic sea - along Russian shores - to Europe and to Asia.

IGOR YUSHKOV, SENIOR ANALYST NATIONAL ENERGY SECURITY FUND "China has actively invested in the project, providing money and technology, and it became a shareholder, so it's an extremely beneficial for China, it's going to get dividends and an energy supply source for many years to come."

This ambitious project is set to show off Russia's capacity to deliver cheaper gas - faster. In the summertime, the Northern Route along the Siberian coast would allow Russia to cut delivery time to Asian ports by 15 days.

The Yamal project has became a driver behind Russia's reinstatement in the Artctic.

IGOR YUSHKOV, SENIOR ANALYST NATIONAL ENERGY SECURITY FUND "For Russia it's an anchor project: once it was launched, Russia started constructing nuclear ice-breakers again, the biggest nuclear icebreaker "Leader" is now in the works and all the following projects in the Arctic will have much greater localisation, involve more domestic producers."

Russia hopes to strengthen its presence on the global LNG market and soon challenge Qatar as world's biggest LNG supplier.

DARIA BONDARCHUK MOSCOW "The launch of the Yamal LNG project, set to triple its output over the next two years - spells decades of guaranteed energy supplies to Europe and Asia, and steady dividends for the plant's biggest foreign stakeholder - China. Daria Bondarchuk, CGTN, Moscow."