Putin launches a giant liquefied gas project in the Arctic

Russian President Vladimir Putin launched the first line of the Arctic LNG2 project in Murmansk, the first phase of a giant Arctic liquefied natural gas (LNG) project in which the French group Total Energy was a party before its withdrawal in 2022.

The value of the project is estimated at $21 billion and is located on the Jaidan Peninsula. It is expected to have a production capacity of 19.8 million tons of LNG annually through three production lines from the Otrinier gas field.

The Russian gas company, Novatek, owns 60% of the project, along with the China National Oil Corporation, the China National Offshore Oil Corporation, and Japan Arctic LNG.

Arctic LNG2 is one of the key projects for Russia’s exploitation of the “Northern Sea Route” connecting Asia with Europe.

Moscow hopes that this Arctic route, which has become usable thanks to global warming and melting ice, will be able in the future to compete with the Suez Canal in the fuel trade.