Last Thursday, Russian President Vladimir Putin officially kicked off the first string of Arctic LNG 2 in Murmansk. This colossal liquefied natural gas (LNG) project in the Arctic, from which France’s TotalEnergies withdrew in 2022, is one of the key projects in Russia’s development of the “Northern Sea Route” to link Asia and Europe.
Arctic LNG 2 gets off to a triumphant start in polar conditions
At the launch ceremony, an operator announced that the “towing mandate for the transport of the LNG plant’s first processing line is ready” and requested authorization to begin sea transport operations. Without hesitation, Vladimir Putin, alongside the head of gas giant Novatek, Leonid Mikhelson, responded positively by pulling the lever, marking the start of operations on this gigantic project.
Located on the Gydan Peninsula, close to the first giant LNG plant on the Yamal Peninsula, which came on stream in 2017, the Arctic LNG 2 project is estimated at a colossal $21 billion. The aim is to achieve a production capacity of 19.8 million tonnes of LNG per year via three production lines, exploiting the abundant gas reserves at nearby Utrenneye.
Arctic LNG 2: geopolitical readjustments and Arctic ambitions
However, French group TotalEnergies’ involvement in the project ended in 2022. Following Russia’s offensive in Ukraine, TotalEnergies announced that it would no longer finance Arctic LNG 2. Russian gas giant Novatek now owns 60% of the project, alongside Chinese companies CNPC and CNOOC, and Japan’s Japan Arctic LNG.
Arctic LNG 2 is closely linked to Russia’s ambitions to develop the “Northern Sea Route” as a major gas transport route between Asia and Europe. Melting ice due to global warming has opened up new prospects for this route, allowing Russia to hope to rival the Suez Canal in the future for hydrocarbon trade.
Arctic LNG 2 facing the fragile Arctic: between energy promise and climate peril
However, this ambitious project raises concerns about its environmental impact in a region as sensitive as the Arctic. The melting of Arctic ice, while facilitating the passage of ships, is largely due to greenhouse gas emissions from the exploitation of fossil fuels, including LNG. This raises questions about the sustainability and long-term consequences of such a project in the context of the global climate crisis.
Despite these concerns, Russia seems determined to go ahead with Arctic LNG 2, pursuing its plans to exploit Arctic resources. It remains to be seen how this colossal project will evolve over the coming years, and what impact it will have on the region and the global energy market.
