Ammonia Project, Yamal’s Leadership, and Arctic Ships

Novatek, co-owner of Yamal LNG, Russia’s major Arctic LNG project, sets sight on securing a niche in the world renewable market. The company has decided to reconfigure its Obsky LNG project to produce clean fuel like ammonia, hydrogen and methanol instead of LNG as initially planned. The restyled project, known as Obsky Gas Chemistry, is expected to be able to produce about 2.2 billion tonnes of ammonia per year by 2026. According to estimates, the project will require an investment of USD 2.2-2.4 billion. Novatek is rumored to have engaged in negotiations with potential investors from outside Russia.

The polar region of Yamal (formally known as the Yamal-Nenets Autonomous District) is determined to retain its leadership in the oil-and-gas production sector of Russia. Currently, it generates about 50% of all income earned in the Russian Arctic and accounts for nearly 60% of all cargo shipped via the Northern Sea Route. According to plans recently unveiled by the regional government, the district’s total oil and gas output will increase by at least 50% by 2035.

According to Rosatom, a Russian state-owned corporation that specializes in nuclear energy, by 2024, the number of polar-class vessels operating in the Russian Arctic is likely to grow to 120. Presently, there are more than 40 modern ships navigating the Northern Sea Route (NSR), all of which were built in the past four years. Rosatom believes that this number will increase drastically owing to a growing interest of investors in the NSR as the shortest way from Southeast Asia to Northern Europe.