Latest news with #ArcticLNG2
Mint
7 hours ago
- 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
Bloomberg
3 days ago
- Business
- Bloomberg
Tanker Seen Near Russia's Arctic LNG 2 for First Time in Months
A liquefied natural gas tanker appears to be heading to a Russian Arctic export plant sanctioned by the US, potentially Moscow's latest efforts to revive shipments from a facility idled for eight months. The Iris, an LNG tanker previously known as North Sky, is on track to arrive at the Arctic LNG 2 facility later Thursday, ship-tracking data on Bloomberg show. The last time LNG was exported from Arctic LNG 2 was in October.
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.
