Latest news with #ArcticLNG2
Russia Today
23-05-2025
- Business
- Russia Today
Mineral desire: Moscow has enough to satisfy India
Once a frozen frontier, the Arctic is rapidly transforming into a geopolitical and geoeconomic focal point. Melting ice is exposing vast reserves of critical minerals, hydrocarbons, and strategic shipping routes. As the West advances through NATO's northern reach, a sanctioned Russia is turning to trusted partners to unlock its Arctic potential. For India, this shift offers a rare strategic opportunity. With rising energy needs, critical mineral ambitions, and a desire for multipolar engagement, India can enter the Arctic not as a competitor, but as a partner to Russia, guardian of over half the Arctic coastline and its richest untapped resources. India's pursuit of energy security and cleaner fuels finds a strategic match in Russia's Arctic LNG (liquefied natural gas) ambitions. While Yamal LNG has proven operationally successful, the Arctic LNG-2 project, long hindered by Western sanctions, now stands at a potential turning point. The renewed thaw in US-Russia relations following Donald Trump's second term, as noted by Oxford Energy, has opened possibilities for easing restrictions on key Arctic energy assets. For India, this shifting landscape offers a timely opportunity to deepen its role in Russia's polar pivot, by investing in Arctic LNG infrastructure, securing long-term gas supplies, and positioning itself as a critical partner in shaping the emerging Arctic order. The Yamal LNG facility, operating at 20% above capacity since 2023, has firmly anchored Russia's Arctic presence, producing over 100 million tonnes of LNG since 2017. For India, this has translated into energy security gains, with GAIL securing long-term contracts for 2.85 MTPA through Gazprom Marketing & Trading Singapore. Despite EU restrictions on transshipment, deliveries continue uninterrupted, aligning with India's strategy of diversifying supply sources to hedge against global volatility and fuel its gas-based economy. Yet the real test lies in Arctic LNG-2. Once 59% complete in 2021, the project stalled under heavy Western sanctions. By 2025, only limited operations resumed. India has maintained official distance, but quiet negotiations persist as Russia courts Indian buyers with steep discounts and DES (Delivered Ex-Ship) terms, mirroring its crude oil outreach. The recent easing of US-Russia tensions after Trump's re-election offers a potential breakthrough: if secondary sanctions are lifted, Indian firms may finally step in, unlocking a significant Arctic energy axis. India's Arctic engagement also aligns with its 'Act Far East' policy and 2022 Arctic policy. ONGC Videsh's $8.4 billion legacy in Sakhalin and Vankorneft provides operational experience and political capital that could be redeployed in the Arctic, though harsher environments and geopolitical stakes differ sharply. As Russia aims to capture 20% of global LNG exports by 2030, India's energy calculus must adapt. For New Delhi, the Arctic offers more than LNG, it's a new corridor linking Russian resources with India's infrastructure and strategic aspirations. As Russia pivots to the Arctic amid Western sanctions, India finds strategic opportunity in emerging polar logistics. The Northern Sea Route (NSR), offering a 40% shorter passage than the Suez Canal and cutting transit time by 16 days, is becoming central to Indo-Russian Arctic cooperation. In 2023, NSR cargo traffic hit a record 36.254 million tonnes, with Moscow targeting 200 million tonnes by 2030. India's growing stake is evident, by early 2023, it accounted for 35% of cargo at Russia's Murmansk port, largely driven by rising coal imports. Complementing this is the Chennai–Vladivostok Maritime Corridor (EMC), launched in late 2024, which directly links India's eastern seaboard to Russia's Arctic gateway. Trade along the EMC has surged as coal shipments rose 87% and crude oil by 48% in FY 2024–25. This corridor not only facilitates India's access to Russia's vast Arctic and Far East resources but also strengthens its maritime footprint. India is positioning its ports and shipyards as vital nodes in Arctic logistics, proposing joint production of $750 million worth of Russian icebreakers. Together, the NSR and EMC mark India's emergence as a serious player in Arctic connectivity, where geoeconomics and strategy now converge. Russia's Arctic frontier, stretching across the Kola Peninsula, Norilsk, and Yakutia, is a treasure trove of critical minerals vital for India's green and digital ambitions. The Kolmozerskoye deposit holds nearly 19% of Russia's lithium reserves, Lovozerskoye is the country's largest rare-earth element (REE) source, and Norilsk supplies over 40% of global palladium. Backed by state giants like Rosatom and Nornickel, Russia is fast-tracking development. Nornickel plans to triple cobalt output to 3,000 tonnes annually by 2025, while Rosatom's Polar Lithium JV prepares to exploit Kolmozerskoye's lithium for global markets. For India, dependent on imports for 100% of its lithium, cobalt, and nickel, access to these resources is a strategic imperative. With China dominating 60–90% of global critical mineral supply chains, Russia offers India a rare diversification opportunity. Ambassador Denis Alipov has highlighted mutual interests in Arctic mineral cooperation. India's $15 billion investment in oil and gas projects in Russia, and the Chennai–Vladivostok Maritime Corridor, operational since 2024, lay the groundwork for secure logistics and collaborative mining ventures. Russia's Arctic holds an estimated 658 million tonnes of rare metals, including 29 million tonnes of REEs, crucial for India's EVs, renewables, and defence technologies. India is also eyeing technology transfer for processing projects like Tomtor, the world's third-largest REE deposit. A proposed Centre of Excellence on Critical Minerals could partner with Russian institutes such as Gipronickel Institute to advance extraction methods. Though Western sanctions complicate financing, India's 2030 target of $100 billion in bilateral trade provides a framework for structured deals. For India, Arctic minerals are not just economic assets, they are pillars of strategic autonomy. By anchoring itself in Russia's resource-rich, sanction-insulated Arctic, India can strengthen its supply chains, hasten its green transition, and reduce dependence on China, all while asserting influence in a rapidly evolving polar landscape. India's Arctic engagement extends beyond economics, grounded in scientific inquiry and climate diplomacy. Since gaining Observer status in the Arctic Council in 2013, India has actively contributed to initiatives like the Arctic Migratory Birds Initiative and the Conservation of Arctic Flora and Fauna Working Group. Its most prominent scientific asset is the Himadri Research Station in Ny-Ålesund, Svalbard, operational since 2008 and managed by the National Centre for Polar and Ocean Research (NCPOR). Himadri supports year-round studies on glaciology, ocean-atmosphere interactions, and the Arctic's impact on the Indian monsoon, with over 200 Indian scientists participating in research missions. India's capabilities offer scope for deeper collaboration with Russia, especially through space-based technologies. The Indian Space Research Organisation (ISRO), using its Cartosat and RISAT satellites, can aid in Arctic mapping, environmental monitoring, and tracking activity along the NSR. India and Russia's longstanding space partnership, dating back to their first agreement in 1962, offers untapped potential for Arctic collaboration in energy, shipping, and strategic monitoring. While current Arctic-specific projects remain limited, future joint space applications could enhance maritime domain awareness and infrastructure development in the polar region. India's Arctic push is a strategic leap, linking energy security, mineral access, and scientific strength with Russia's resource-rich north. As the Arctic reshapes global power corridors, India is no longer a bystander but a rising stakeholder. With logistics in place and a $100 billion trade vision, the polar frontier offers India more than resources, it offers resilience. In the ice of the Arctic, India finds new ground for strategic autonomy.
Bloomberg
20-05-2025
- Business
- Bloomberg
Sanctioned Russian Arctic LNG Plant Is Using New Production Line
Russia's newest liquefied natural gas plant in the Arctic has begun using a second production line, even as the facility remains under stifling Western restrictions. Arctic LNG 2, a flagship project for the Kremlin, shut large-scale production in October as sanctions discouraged overseas demand and ice buildup made it difficult for ships to arrive. While the plant managed to dispatch several shipments last summer, none found buyers.
Reuters
08-05-2025
- Business
- Reuters
Russia, China discuss Beijing's participation in Russian LNG projects, minister says
May 8 (Reuters) - Chinese companies' involvement in Russian liquefied natural gas projects is being discussed by Russian and Chinese delegations at talks in Moscow, the Interfax news agency cited Russian Energy Minister Sergei Tsivilev as saying on Thursday. When asked about the possibility of Russian companies entering LNG projects in Ust-Luga or other locations in Russia, Tsivilev said that the topic was "being discussed at the moment," but did not provide further details. The state-owned China National Petroleum Corp (CNPC) and Silk Road Fund hold stakes in Russia's Yamal LNG project, while CNPC and China National Offshore Oil Corporation (CNOOC) are involved in the Arctic LNG 2 project. Russia has repeatedly welcomed the prospect of Chinese companies participating in the construction of an LNG plant and a gas chemical complex in Ust-Luga. Russia and China will sign a large number of documents later on Thursday, including an updated investment agreement, Russian President Vladimir Putin told Chinese President Xi Jinping at a meeting in Moscow. Xi is in the Russian capital this week for commemorations to mark the 80th anniversary of the victory of the Soviet Union and its allies over Nazi Germany in World War Two.
Yahoo
05-05-2025
- Business
- Yahoo
Russia's Arctic gas fleet drops Panama flag
Four Russian ice-class LNG (liquefied natural gas) tankers have been re-registered under the Russian flag, abandoning their Panamanian registration. Source: The Moscow Times Details: The vessels were originally intended to transport LNG from the Arctic LNG 2 project, which is under US sanctions and was supposed to account for about 20% of Russia's LNG production. The tankers – formerly named North Sky, North Air, North Mountain and North Way – were renamed Iris, Buran, Voskhod and Zarya in mid-April. These ships, launched in 2023 and 2024, were built by Samsung Heavy Industries for Japanese operator NYK under a contract with Novatek for the Arctic LNG 2 project. They were later transferred to Dubai-based White Fox Ship Management. All four vessels, as well as White Fox, were placed under US sanctions in August 2024. The tankers may follow the tactics of Russia's shadow oil fleet and, while heading to the sanctioned Arctic LNG 2 project, may engage in deceptive manoeuvres, including masking or falsifying their location data. "In Russian waters, ship-tracking requirements such as the Automatic Identification System (AIS) can be loosely enforced, and state insurance coverage can be used," suggested Kjell Eikland, managing director at data provider Eikland Energy. The preparation of these vessels indicates that Novatek is attempting to resume operations at Arctic LNG 2, which halted gas extraction and commercial liquefaction in 2024. All four vessels are classified as Arc4 – a mid-level ice-class rating required to access the Morning terminal. "It's still cold there and the sea is covered with ice. By early June, it's quite possible that two LNG lines at Arctic LNG will be operational," Eikland stated. Attempts to export liquefied gas from the plant are unlikely before sea ice in the Gulf of Ob begins to melt – a process that typically starts in June. Background: The Arctic LNG 2 project drastically reduced gas production at its fields in November 2024 due to Western sanctions. Support Ukrainska Pravda on Patreon!
Newsweek
01-05-2025
- Business
- Newsweek
Putin's Arctic Shadow Fleet Suddenly Awakens, Sparking Speculation
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Russian vessels that are part of the the country's so called "shadow fleet" have been renamed and reregistered in what is seen a sanctions-busting move to transport liquefied natural gas (LNG) from a facility in the Arctic, it has been reported. The Arctic-LNG 2 project on the shores of the Gulf of Ob opposite the Yamal Peninsula in Russia's far north was targeted by tough U.S.-led sanctions under the previous Biden administration following President Vladimir Putin's full-scale invasion of Ukraine. But last summer, LNG carriers traveling to Arctic LNG 2, which is run by Russia's energy giant Novatek, deactivated or spoofed their locations to allow shipments, according to maritime outlet Last month, four LNG carriers were reflagged from Panama to Russia and their names were changed, the outlet reported. Malte Humpert, senior fellow at the Arctic Institute, told Newsweek this was intended as a sanctions-busting move and with the LNG from the site intended mostly for Asia, China was less concerned about secondary sanctions under the Trump administration. Newsweek has contacted Novatek for comment. This illustrative image from March 10, 2022, shows the LNG (Liquefied natural gas) tanker Rudolf Samoylovich, sailing under the flag of Bahamas, near Saint-Nazaire, western France. This illustrative image from March 10, 2022, shows the LNG (Liquefied natural gas) tanker Rudolf Samoylovich, sailing under the flag of Bahamas, near Saint-Nazaire, western France. Why It Matters As major generators of Russia's export revenues, oil and natural gas have been the focus of western-led sanctions to choke Moscow's war machine. However, Russia has set up a shadow fleet of vessels to circumvent a $60 price cap on seaborne oil and the export continues to swell the Kremlin's coffers. Russia's piped natural gas industry has been hit hard by the war. But seaborne LNG exports from Russia to the EU are on the rise and Russian-built carriers are becoming an increasingly important part of the shadow fleet. What To Know GCaptain reported that in the middle of April, the vessels North Sky, North Air, North Mountain, and North Way were renamed Iris, Buran, Voskhod, and Zarya and their registration was changed from Panama to Russia. Launched in 2023 and 2024, the vessels were transferred to Dubai-based White Fox Ship Management, and all were included in the August 2024 round of economic sanctions by the U.S. Last summer, LNG carriers traveling to the sanctioned Arctic LNG 2 project deactivated or spoofed their location, and last month's renaming and reflagging are likely to signal a repeat of this practice this year, Humpert said. He said the sanctions environment has changed since last year when the former Biden administration was on top of trying to interdict LNG exports from Arctic LNG 2, which was primarily designed to supply Asian markets unlike Novatek's unsanctioned Yamal LNG, which is increasing supplies to Europe. Humpert added that under the Trump administration, less personal attention is being paid to this, especially with the loss of State Department employees with expertise and now Chinese buyers will be less concerned about facing secondary sanctions. It comes as a study published by the Ukrainian campaign group Razom We Stand found the EU can cut its remaining reliance on Russian gas given the right political will. The report released this week said that Europe had the technology and the tools to break free from Russian LNG, as an increasing shift away from fossil fuel generation and an increase in use of renewable energy. Svitlana Romanko, Razom We Stand founder, said in a statement to Newsweek that Russian gas revenues are still fueling destruction and death in Ukraine, despite pledges of support from Europe's leaders. She said that the RePower EU road map pledging to end dependency on Russian fossil fuels by 2030 set to come into force will play a key part in peace and security for Ukraine and Europe. What People Are Saying Malte Humpert, Arctic Institute, "The sanctions environment has probably changed compared to last year when the Biden administration was really on top of trying to interdict Russian LNG exports from Arctic LNG 2." Svitlana Romanko, Founder and Executive Director of Razom We Stand: "Europe finally has the technology and the knowledge to cut ties with Russian gas. What it lacks is the political determination to act." What Happens Nest Production levels at Arctic-LNG 2 are on the up with gas flaring continuing last month and there is the prospect of new shipments this summer they would rely on the four renamed vessels. However, GCaptain reported Novatek may continue to struggle finding buyers or find new ways to obscure the origin of sanctioned cargoes,
