Russia launches Arctic LNG 2 liquefied natural gas project transported via the Arctic
The new liquefied natural gas (LNG) project transported via the Arctic is taking shape in Russia. Vladimir Putin kicked off Thursday, July 20 in Murmansk to start the sea transport of this new production line. Called Arctic LNG 2, this $21 billion project strengthens the operation of this road made passable by global warming and reshuffles the geostrategic maps of the region.
Novatek offshore structure construction workshops in Belokamenka, Murmansk region of Russia, July 20, 2023. AFP - ALEXANDER KAZAKOV
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Russia is already doing it by sea on its Pacific coast. Its liquefied natural gas (LNG), this gas cooled to -160 ° to arrive at a liquid form, is sent to the East. But Vladimir Putin thinks bigger: to reach 20% of world production by 2035, against 8% today.
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The idea is to reach markets that consume LNG, both Asia and Europe, and especially that are not linked to pipelines. Pipeline transportation dropped significantly in 2022, about 50% compared to 2021. And that's due to a unilateral decision by Russia," said Carole Etienne, a natural gas and LNG analyst at the International Energy Agency.
The Northern Route, already open
Russia has already done it through the North, with the Yamal project. It was he who opened in 2017 the Arctic route, which has become passable with global warming. But the icebreakers that are essential in winter are very expensive to use.
The Arctic LNG 2 project therefore provides for two offshore terminals to transship LNG to conventional ships and therefore cheaper. It is increased to 60% by the Russian company Novatek. The rest of the funding is shared between Chinese and Japanese. The French TotalEnergies withdrew from the game after the beginning of the war in Ukraine.
The project is expected to reach a production capacity of 19.8 million tonnes of LNG per year through three production lines, tapping into the rich Utrenneye gas field nearby. Russia hopes that this Arctic route will be able to compete with the Suez Canal for hydrocarbon trade in the future.
Read alsoCan LNG replace Russian gas?
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