Latest news with #ArcticInstitute
The Herald Scotland
11-07-2025
- Business
- The Herald Scotland
Trump tax bill sends new icebreaker fleet into melting Arctic
The icebreakers and ice-strengthened cutters would work in both the Arctic and Antarctic regions, which are seeing increasing focus as climate change makes mining and shipping more practical by melting some of the ice. Shrinking sea ice in Alaska in particular means more commercial ships would be traveling through or fishing the area, requiring more Coast Guard patrols. "This historic investment marks a new era for the Coast Guard," Coast Guard Acting Commandant Admiral Kevin Lunday said in a statement. The Coast Guard currently only has one heavy icebreaker, the USCGC Polar Star, and it's almost 20 years beyond its expected service life. The Coast Guard's other icebreaker, the 27-year-old medium-duty USCGC Healy, has suffered repeated fires. Last year the Coast Guard cancelled its planned Alaska-area patrols due to an engine-room fire, according to officials. Global tension: Greenland not for sale. It is welcoming Americans with direct flights. On Trump's birthday Russia operates multiple nuclear-powered icebreakers, which U.S. defense officials say gives it an advantage in the strategically crucial region. Coast Guard officials have been warning for years they lack the necessary ships to properly patrol icy waters, which include shipping routes between the United States and Canada in the Great Lakes, along with serving Alaska and the Antarctic research base McMurdo Station. Alaska Native people living along the shores of the Bering Sea worry increasing shipping and resource extraction pose environmental dangers, especially if the Coast Guard lacks the resources to patrol the area. Trump has vowed closer American oversight of both northern Canada and Greenland. When free of ice, the fabled Northwest Passage connects the Atlantic Ocean to the Pacific via the Bering Sea - a 40% shorter route for ships to travel from Asia to Europe compared to using the Panama or Suez canals. Federal officials worry that China is increasingly collaborating with Russia in the area, which is rich in both oil and rare Earth minerals necessary for computer chips and other technology. Greenland in particular is seen by Trump as a contested area where climate change is melting ice sheets and opening new areas for mining. The Arctic Institute, a nonprofit think-tank based in Washington, D.C., has long lobbied for more Coast Guard icebreakers, given the potential for how climate change will alter shipping, fishing and mining in the polar regions. The institute has called the United States "woefully behind" other Arctic-adjacent countries when it comes to icebreaker construction, and said opening up the Arctic without adequate icebreakers is akin to playing baseball without bats. The Coast Guard already has one large icebreaker under construction, but that project has seen signifcant costs overruns and delays of more than a year for completion. The nonpartisan U.S. Government Accountability Office said in a December 2024 analysis that the Coast Guard might end up paying billions more than planned for that ship and two others that have already been authorized. They might be ready sometime in the mid-2030s, the GAO said, while the first ships authorized by the new Trump spending might not be operational until the 2040s. The White House wants to increase domestic shipbuilding capacity but in the interim, the Coast Guard last year bought a used oil exploration ship that will be extensively renovated, renamed and deployed in Juneau, Alaska.
USA Today
10-07-2025
- Business
- USA Today
'Big Beautiful Bill' supercharges Coast Guard's Arctic icebreaker fleet
Federal officials have long warned the Coast Guard needed new ships to patrol icy waters eyed by China. Climate change is opening up a new front in the ongoing cold war between the United States and China, and President Donald Trump is gearing up with new icebreakers to help patrol the Northwest Passage connecting Alaska to Greenland. Contained in the new federal spending law formerly known as the "Big Beautiful Bill" is funding for 17 icebreakers, 21 cutters, more than 40 helicopters and six large patrol airplanes, Coast Guard officials said. It could take as long as 15 years to get the first of the large ships commissioned, according to government estimates. The icebreakers and ice-strengthened cutters would work in both the Arctic and Antarctic regions, which are seeing increasing focus as climate change makes mining and shipping more practical by melting some of the ice. Shrinking sea ice in Alaska in particular means more commercial ships would be traveling through or fishing the area, requiring more Coast Guard patrols. "This historic investment marks a new era for the Coast Guard," Coast Guard Acting Commandant Admiral Kevin Lunday said in a statement. The Coast Guard currently only has one heavy icebreaker, the USCGC Polar Star, and it's almost 20 years beyond its expected service life. The Coast Guard's other icebreaker, the 27-year-old medium-duty USCGC Healy, has suffered repeated fires. Last year the Coast Guard cancelled its planned Alaska-area patrols due to an engine-room fire, according to officials. Global tension: Greenland not for sale. It is welcoming Americans with direct flights. On Trump's birthday Russia operates multiple nuclear-powered icebreakers, which U.S. defense officials say gives it an advantage in the strategically crucial region. Coast Guard officials have been warning for years they lack the necessary ships to properly patrol icy waters, which include shipping routes between the United States and Canada in the Great Lakes, along with serving Alaska and the Antarctic research base McMurdo Station. Alaska Native people living along the shores of the Bering Sea worry increasing shipping and resource extraction pose environmental dangers, especially if the Coast Guard lacks the resources to patrol the area. Trump has vowed closer American oversight of both northern Canada and Greenland. When free of ice, the fabled Northwest Passage connects the Atlantic Ocean to the Pacific via the Bering Sea ‒ a 40% shorter route for ships to travel from Asia to Europe compared to using the Panama or Suez canals. Federal officials worry that China is increasingly collaborating with Russia in the area, which is rich in both oil and rare Earth minerals necessary for computer chips and other technology. Greenland in particular is seen by Trump as a contested area where climate change is melting ice sheets and opening new areas for mining. The Arctic Institute, a nonprofit think-tank based in Washington, D.C., has long lobbied for more Coast Guard icebreakers, given the potential for how climate change will alter shipping, fishing and mining in the polar regions. The institute has called the United States "woefully behind" other Arctic-adjacent countries when it comes to icebreaker construction, and said opening up the Arctic without adequate icebreakers is akin to playing baseball without bats. The Coast Guard already has one large icebreaker under construction, but that project has seen signifcant costs overruns and delays of more than a year for completion. The nonpartisan U.S. Government Accountability Office said in a December 2024 analysis that the Coast Guard might end up paying billions more than planned for that ship and two others that have already been authorized. They might be ready sometime in the mid-2030s, the GAO said, while the first ships authorized by the new Trump spending might not be operational until the 2040s. The White House wants to increase domestic shipbuilding capacity but in the interim, the Coast Guard last year bought a used oil exploration ship that will be extensively renovated, renamed and deployed in Juneau, Alaska.
&w=3840&q=100)
Business Standard
30-06-2025
- Business
- Business Standard
Russia tries again to boost LNG exports stalled by US sanctions last year
Russia has the pieces in place to meaningfully boost LNG exports as it expands its shadow fleet Bloomberg Russia is taking another crack at expanding exports of liquefied natural gas after US sanctions stalled efforts last year. An LNG vessel has docked and then left the Arctic LNG 2 export facility for the first time since October, according to ship-tracking data compiled by Bloomberg and satellite images. The facility was supposed to be a cornerstone of Moscow's goal to triple LNG exports by 2030, but has been idle for months after struggling to find buyers willing to break Western restrictions. Russia has the pieces in place to meaningfully boost LNG exports as it expands its shadow fleet. Since the 2022 invasion of Ukraine, Russian gas pipeline exports to Europe have dwindled, and shipping more fuel via seaborne LNG tankers provides an attractive revenue stream to fill Moscow's coffers. Shadow fleet At least 13 ships, including those that can navigate icy waters, have been marshaled to potentially service Arctic LNG 2, with some changing management companies several times to help obfuscate the actual owners. According to ship-tracking data compiled by Bloomberg they include: Four ice-class vessels that can navigate the frozen waters around Arctic LNG 2. Three are currently idled in the Barents Sea, while another is the tanker currently docked at Arctic LNG 2 Three more traditional LNG vessels are in the Barents sea Two vessels are under repair in China, with another that appears to be on the way One vessel near a floating storage in Russia's Far East Two vessels are idled in the the Gulf of Finland. They had served another Russian facility called Portovaya, which was sanctioned by the US in January 'Russia does have more vessels at its disposal compared to the summer/fall of 2024,' Malte Humpert, founder of the Arctic Institute, a Washington-based think-tank, said in an email. 'If it can find buyers, this small fleet should be sufficient to lift cargoes.' Eight shipments were exported from Arctic LNG 2 between August and October 2024, but never docked on foreign shores. Instead, the gas was offloaded into two Russian storage units in the Barents Sea and its Far East region. Large-scale production halted in October after ice built up around the facility and made transport by traditional vessels challenging. Russia's first domestically built ice-class LNG tanker may come online in the second half of this year if it passes remaining sea trials, Interfax reported Wednesday, citing Sovcomflot Chief Executive Officer Igor Tonkovidov. Willing buyers? Now, the market will be closely monitoring whether Arctic LNG 2 can find willing buyers. Exporting more would be a boon for consumers, as it would put pressure on global gas prices. The Biden administration was diligent in sanctioning ships and companies connected with exporting fuel from Arctic LNG 2 last year. It isn't clear if the Trump administration will be as strict, or if the government will slap restrictions on ports that accept the fuel. The threat of retaliation from the US kept buyers at bay last year. Officials related to the Arctic LNG 2 joint venture have never stopped trying to sell the fuel, traveling to potential buyers in India and China over the last year, according to traders with knowledge of the matter. However, it isn't clear if they have been able to secure any sales. 'The biggest obstacle remains finding a buyer and shipping capacity,' Jan-Eric Fahnrich, a senior analyst at Rystad Energy, said by email. 'They will then circle around looking for buyers in Asia and Novatek will offer a discount.' Majority shareholder Novatek PJSC and the operating venture Arctic LNG 2 did not respond to emails seeking comment. Iris, the tanker that recently left Arctic LNG 2, is now heading toward the northern port of Murmansk, according to ship-tracking data. The vessel could be traveling there to offload fuel into a nearby floating storage unit or another vessel in a ship-to-ship transfer. It's not immediately clear if any LNG was loaded on the vessel. The tanker's draft level — which the crew inputs manually — didn't change after leaving the plant, the data shows, signaling it may not have loaded LNG cargo. The Iris is expected to reach Murmansk on July 1, according to the data. 'The fact that more than one million cubic meters of LNG loaded last year remains unsold, and in floating storage, does not bode well for renewed attempts to market additional volumes this summer,' said the Arctic Institute's Humpert. 'China would appear to be the most likely candidate, but with consistently declining Chinese demand for the past eight months this won't be an easy task.' Iris is also a so-called Arc4 vessel, with a reinforced hull that allows it to navigate icy waters. That would allow the ship to take the shorter Arctic route to Asia when conditions allow in the summer. Loading vessels at Arctic LNG 2 could also be necessary to ease brimming gas tanks. Satellite images taken June 25 indicate that two production trains at the facility are flaring, which indicates they could be operating or cooling down equipment. Without steady exports, the plant's storage will quickly fill up, and lack of space was one of the reasons why Arctic LNG 2 stopped large-scale production in October. Meanwhile, traders will wait to see if US or European officials further tighten restrictions on the facility as exports resume. 'Now is the time for increased pressure' on Russia's energy revenues, said Geoffrey Pyatt, distinguished fellow at the Atlantic Council Global Energy Center and a former US assistant secretary of state who helped craft Arctic LNG 2 sanctions under the Biden administration. 'European leaders have expressed new determination to end all imports of Russian gas, making it even more important that the United States maintains our pressure on Novatek.'
Mint
29-06-2025
- Business
- Mint
Russia Tries Again to Expand LNG Exports Upended by Sanctions
(Bloomberg) -- Russia is taking another crack at expanding exports of liquefied natural gas after US sanctions stalled efforts last year. An LNG vessel has docked at the Arctic LNG 2 export facility for the first time since October, according to ship-tracking data compiled by Bloomberg and satellite images. The facility was supposed to be a cornerstone of Moscow's goal to increase LNG exports threefold by 2030, but has been idle for months after struggling to find buyers willing to break western restrictions. Russia has the pieces in place to meaningfully boost LNG exports as it expands its shadow fleet. Since the 2022 invasion of Ukraine, Russian gas pipeline exports to Europe have dwindled, and shipping more fuel via seaborne LNG tankers provides an attractive revenue stream to fill Moscow's coffers. At least 13 ships, including those that can navigate icy waters, have been marshaled to potentially service Arctic LNG 2, with some changing management companies several times to help obfuscate the actual owners. According to ship-tracking data compiled by Bloomberg they include: 'Russia does have more vessels at its disposal compared to the summer/fall of 2024,' Malte Humpert, founder of the Arctic Institute, a Washington-based think-tank, said in an email. 'If it can find buyers, this small fleet should be sufficient to lift cargoes.' Eight shipments were exported from Arctic LNG 2 between August and October 2024, but never docked on foreign shores. Instead, the gas was offloaded into two Russian storage units in the Barents Sea and its Far East region. Large-scale production halted in October after ice built up around the facility and made transport by traditional vessels challenging. Russia's first domestically built ice-class LNG tanker may come online in the second half of this year if it passes remaining sea trials, Interfax reported Wednesday, citing Sovcomflot Chief Executive Officer Igor Tonkovidov. Now, the market will be closely monitoring whether Arctic LNG 2 can find willing buyers. Exporting more would be a boon for consumers, as it would put pressure on global gas prices. The Biden administration was diligent in sanctioning ships and companies connected with exporting fuel from Arctic LNG 2 last year. It isn't clear if the Trump administration will be as strict, or if the government will slap restrictions on ports that accept the fuel. The threat of retaliation from the US kept buyers at bay last year. Officials related to the Arctic LNG 2 joint venture have never stopped trying to sell the fuel, traveling to potential buyers in India and China over the last year, according to traders with knowledge of the matter. However, it isn't clear if they have been able to secure any sales. 'The biggest obstacle remains finding a buyer and shipping capacity,' Jan-Eric Fahnrich, a senior analyst at Rystad Energy, said by email. 'They will then circle around looking for buyers in Asia and Novatek will offer a discount.' Majority shareholder Novatek PJSC and the operating venture Arctic LNG 2 did not respond to emails seeking comment. Iris, the tanker currently docked at Arctic LNG 2, is a so-called Arc4 vessel, with a reinforced hull that allows it to navigate the shorter Arctic route to Asia when conditions allow in the summer. It is likely that the ship will make the journey, as Asia is home to buyers who may be willing to circumvent western restrictions. 'China would appear to be the most likely candidate, but with consistently declining Chinese demand for the past eight months this won't be an easy task,' said the Arctic Institute's Humpert. 'The fact that more than one million cubic meters of LNG loaded last year remains unsold, and in floating storage, does not bode well for renewed attempts to market additional volumes this summer.' Loading vessels at Arctic LNG 2 could also be necessary to ease brimming gas tanks. Satellite images taken June 25 indicate that two production trains at the facility are flaring, which indicates they could be operating or cooling down equipment. Without steady exports, the plant's storage will quickly fill up, and lack of space was one of the reasons why Arctic LNG 2 stopped large-scale production in October. Meanwhile, traders will wait to see if US or European officials further tighten restrictions on the facility as exports resume. 'Now is the time for increased pressure' on Russia's energy revenues, said Geoffrey Pyatt, distinguished fellow at the Atlantic Council Global Energy Center and a former US assistant secretary of state who helped craft Arctic LNG 2 sanctions under the Biden administration. 'European leaders have expressed new determination to end all imports of Russian gas, making it even more important that the United States maintains our pressure on Novatek.' --With assistance from Anna Shiryaevskaya. More stories like this are available on
CNBC
23-05-2025
- Business
- CNBC
Moscow is getting tetchy as the West zones in on the Arctic for resources and security
Russia has long been the geopolitical kingpin of the Arctic, with deeply-embedded military, commercial and strategic investments in the region. But now that the U.S. and NATO are pivoting their focus to the Arctic for geoeconomic and security reasons, Moscow is getting tetchy about the West's newfound interest. That's perhaps to be expected, given Russia's territorial stake in the region: Russia spans 53% (or over 22,990 miles) of the Arctic Ocean coastline, and out of its population of around 146 million people, 2.5 millions Russians live and work there, according to the Arctic Institute, a center for circumpolar security studies. For locals — and the wider Russian economy — strategic drivers of jobs, investment and growth include oil, gas and mineral extraction industries, fisheries, and infrastructure and transportation logistics, particularly related to the Northern Sea Route, a major Arctic shipping route for Russia between Europe and Asia. In addition, Russia maintains its sea-based nuclear deterrent in the Arctic and has a number of military bases and airfields there, as well a specialized fleet of ice breakers to facilitate trade, transportation and resource extraction in the territory. This is why Russia watches closely when U.S. President Donald Trump says he's going to take over the resource-rich Arctic island of Greenland, or when NATO carries out Arctic war games. "NATO countries in general are increasingly designating the Far North as a springboard for possible conflicts,' Russian President Vladimir Putin commented as NATO allies conducted war drills in Norway in March that involved 10,000 NATO troops from nine allied nations. The exercises were designed, NATO said, to hone their skills, military capabilities and cooperation for extreme cold weather warfare. Putin was not convinced, stating that it "is obvious that the role and importance of the Arctic both for Russia and for the whole world is growing. But, unfortunately, geopolitical competition, the struggle for positions in this region, is also intensifying." Shortly after NATO's exercises, Russia's Northern Fleet (tasked with defending the Arctic seas along Northern Russia, including the Barents Sea and Kara Sea) begun exercises in the Arctic involving 20 ships and around 1,500 personnel, Russian news agency Interfax reported. CNBC has contacted the Kremlin for further comment and is awaiting a response. Russia is looking to aggressively expand its economic interests in the Arctic, with the region contributing significant value to the economy. "Today, the Arctic already produces 7.5% of Russia's gross domestic product and more than 11% of its exports," Alexey Chekunkov, minister for the Development of the Russian Far East and Arctic, said last week in comments reported by newspaper Rossiyskaya Gazeta, and translated by Google. Russia was "implementing global-scale investment projects in the Arctic and developing the world's largest network of Arctic cities," he added. "As the projects that have already begun are implemented, the importance of the Arctic in Russia's economy, logistics, and security will only increase," Chekunkov said, noting that "it is difficult to overestimate the importance of the Northern Sea Route, which provides a 40% shorter route between Europe and Asia." International sanctions designed to degrade Russia's oil and gas sector following its invasion of Ukraine in 2022 have affected some big projects in the region, with liquefied natural gas (LNG) output from the Arctic LNG 2 project and a mega oil project planned by Vostok Oil among the major infrastructure projects hit by Western sanctions. Russia has looked to evade sanctions by using a so-called "shadow fleet" of vessels and tankers to export its oil and gas supplies to customers still willing to buy them, with Ukraine's Western allies playing catch-up to try to close loopholes that have allowed Moscow to do this. Marie-Anne Coninsx, former EU ambassador for the Arctic, told CNBC Wednesday that the Arctic was "of crucial strategic interest for Russia, economically and [in terms of] security. It's an enormous source of GDP because of the extraction of energy resources, and the use of the Northern Sea Route is an enormous income for Russia. And with this income, and despite the sanctions, Russia has been able to finance one third of the cost of the war in Ukraine with these exports," she told CNBC's "Squawk Box Europe." "The sanctions are having an effect but should go further, because it it is touching the the Russian economy, but there is the other aspect of security, because Russians known its nuclear powers are in the Arctic, and this is a serious threat for Europe," she said. One of the problems for Europe and NATO's Arctic strategy is that it is only playing catch-up when compared to Russia's long-standing development of its Arctic territory. Russia began reinvesting in Arctic affairs in the mid-2000s, said analysts at the Center for European Policy Analysis (CEPA), adding that "the Kremlin remains adamant in asserting complete control over the Arctic Zone of the Russian Federation," as it looks to protect perceived vital interests along the Northern Sea Route. In contrast, the West's renewed interest in the Arctic has been largely spurred by Russia's invasion of Ukraine in 2022. "Until [that], I would say there was no real NATO awareness of the security threat in the Arctic, it was neglecting its northern flank," former EU ambassador to the Arctic Coninsx told CNBC. "But due to the invasion of Russia in Ukraine, and particularly thanks to the new membership [in the alliance] of Sweden and Finland, there is a strengthening security force from NATO in northern Europe ... And for the European Union, it has become more important for geo-economic and geopolitical security reasons." The Arctic "is becoming the center of world attention" also for "geoeconomic reasons" — including the fact that climate change meant the wealth of natural resources and critical minerals in the Arctic were now more accessible, and there are more shipping opportunities along the Northern Sea Route. "Therefore there is an increased interest also for major geopolitical players, not only of the U.S., but also from non-Arctic states, major ones like China," she said. U.S. interest in the Arctic has also been renewed by the Trump administration, with the president vowing to take over Greenland, potentially with military force. That did not go down well in either Greenland, Denmark or Europe, with widespread condemnation of the president's posture on the matter. Interestingly, Russia seemed to take a more sanguine position on Trump's interest, saying it was watching developments closely. Eyeing an opportunity to leverage its own experience in the "Far North" around the Arctic Circle, and perhaps to ingratiate itself with Trump, Bloomberg reported in February that Moscow was interested in developing joint projects with the U.S. around natural resource extraction and transportation in the Arctic. CNBC has asked the Kremlin and White House for further comment on the report and is awaiting a response.
