The rising world leader for liquefied natural gas producer, Russia has a bold move this year. The country started to drill at Arctic Region to extract natural gas.
Russia was one of the known dominant players in fossil fuel market today, however, the latest plan of the nation is yet another setback.
The Russia’s new $27 billion plant will extract over 16 million tonnes of liquefied natural gas per year.
For quite some time, polar ice is melting, and the Arctic region, from North America to Russia, reveals its hidden treasures.
With thinner ice and new open pathways to the deep north, drilling previously inaccessible parts of the planet has never been a more attractive pursuit.
The world’s biggest economies are joining the race to assert their power over the Arctic’s fossil fuel resources, whether by claiming new territories or building new infrastructure in harsh environments.
With the Russian President Vladimir Putin’s latest move in this direction is a colossal plant that will extract liquefied natural gas (LNG), helping Russia become the world’s biggest exporter of the chilled fuel ahead of Qatar, which currently leads the market.
According to the report, the plant, worth $27 billion, is located in the remote Yamal Peninsula above the Arctic circle and was realized in partnership with France’s Total and China’s CNPC.
By the start of 2019, the plant will extract 16.5 million tonnes per year.
According to the project’s deputy director Dmitry Monakov, the producing LNG in permafrost was easier than in warmer climes: “Nature itself helps us to more effectively liquefy gas with the help of such low temperatures.”
“Together we managed to build from scratch a world-class LNG project in extreme conditions to exploit the vast gas resources of the Yamal peninsula,” he said in a company statement.
As the world’s biggest gas exporter, Russia makes huge profits from distributing fossil fuels to Europe, but it is also seeking to strengthen partnerships with new allies such as China, which provided finance for the new LNG plant among other projects.
Meanwhile, the move of Russia receives opposition from analysts at the global think tank Centre for European Policy Studies (CEPS). They issued warning to Russia’s “ostrich approach to phasing out fossil fuels and its denial of the human origins of climate change” could hamper climate action globally.
As of now, Russia is currently the world’s fourth biggest emitter, and the only major polluter that has yet to ratify the Paris Agreement.