Strategic approach to implementation of innovation in the Arctics on the example of “Arctic Cascade” natural gas liquefaction technology

The article examines the current situation in the world production and consumption of the liquefied natural gas (LNG). The main global trends as well as the reasons for significant growth in LNG consumption in most countries are analyzed. The authors also study the structure of global import of LNG and the opportunities for increasing supplies by the Russian energy companies. Russian companies are primarily supplying LNG to European countries. However, the results of the analysis show high export potential of the Asian market. Realizing the potential is the most important strategic task for domestic energy companies. The article also examines the history and the current process of developing LNG production on the Russian territory. The authors reveal various aspects of the current implementation of such projects as “Yamal LNG” and “Arctic LNG 2” within the Arctic area of the Russian Federation. Particularly, the authors describe development of transportation-logistics system as part of these projects. Moreover, the article contains the analysis of the problem of ensuring technological independence in the process of implementation of LNG projects. Russian energy companies should increase their technological independence and localization of production by consistent implementation of the import substitution strategy. One of the solutions in ensuring technological independence is innovation technology of natural gas liquefaction “Arctic Cascade”. The article presents the detailed technical and economical aspect of implementing this technology. Using this technology ensures 30 % reduction of the LNG production cost price. Besides, this innovation technology can ensure 100 % localization of production.

1. Shchegol’kova A.A., Ul’chenko M.V. Reproduction of natural gas reserves in the Russian Arctic: economic aspect. Izvestiâ Sankt-Peterburgskogo Gosudarstvennogo Èkonomičeskogo Universiteta. 2018;(5):113–120. (In Russ.)

2. Fadeev A.M., Cherepovitsyn A.E., Larichkin F.D. Strategic management of the oil and gas complex in the Arctic. Apatity: Kola Sci. Center RAS; 2019. 289 p. (In Russ.). https://doi.org/10.25702/KSC.978.5.91137.407.5

3. Statistical Review of World Energy 2020. British Petroleum. URL: https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energyeconomics/statistical-review/bp-stats-review-2020-full-report.pdf (accessed on 06.02.2022).

4. Shell LNG Outlook 2020. URL: https://www.shell.com/energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook-2020.html#iframe=L3dlYmFwcHMvTE5HX291dGxvb2sv (accessed on 06.02.2022).

5. Agarkov S.A., etc., eds. Global trends in the development of energy resources of the Russian Arctic. In 2 pt. Pt. 1. Trends in the economic development of the Russian Arctic. Apatity: Kola Sci. Center RAS; 2019. 170 p. (In Russ.). https://doi.org/10.25702/KSC.978.5.91137.397.9-1

6. Baranov A.Yu., Tihonov K.A., Andreev A.M., Berezin N.A. Energy efficient technologies of natural gas liquefaction. Scientific Journal NRU ITMO. Series “Refrigeration and Air Conditioning”. 2016;(1):1–8. (In Russ.). https://doi.org/1010.17586/2310-1148-2016-9-1-8

7. Yuri Trutnev held a meeting on the progress of the experimental voyage along the Northern Sea Route. Website of the Russian Government. News. February 16, 2021. (In Russ.) URL: http://government.ru/news/41556/ (accessed on 06.02.2022).

8. Nikitin V.R. The Northern Sea Route as an alternative to the Suez Canal. In: Logistics and supply chain management. St. Petersburg: St. Petersburg St. Econ. Univ.; 2019:140–144. (In Russ.)

9. “Sovcomflot” announced the dates for the start of year-round navigation along the Northern Sea Route. June 7, 2021. (In Russ.) URL: https://www.vedomosti.ru/economics/news/2021/06/07/873250-sovkomflot-nazval-sroki-nachala-kruglogodichnoi-navigatsii-po-sevmorputi (accessed on 06.02.2022).

10. Larichkin F.D., Ponomarenko T.V., Fadeev A.M. Transport and logistics factor in ensuring the competitiveness of the mineral resource complex of the Arctic zone. Sever i Rynok: Formirovanie Ekonomicheskogo Poryadka. 2014;(32):9–32. (In Russ.)

11. Overview of the World LNG market. Gazprom Expo (In Russ.). URL: http://www.gazpromexpo.ru/projects/inform/sgp (accessed on 06.02.2022).

12. Ulchenko M.V. Analysis of LNG market trends and prospects for the implementation of Russian Arctic LNG projects. Sever i Rynok: Formirovanie Ekonomicheskogo Poryadka. 2021;(1):82–97. (In Russ.). https://doi.org/10.37614/2220-802X.1.2021.71.007

13. Tatarenko V.I., Robinson B.V., Lyapina O.P., Usikova O.V. Russian LNG projects: history, modernity, prospects. Interekspo Geo-Sibir’. 2018;1(3):61–74. (In Russ.)

14. Steblyanskaya A.N., Wang Z., Razmanova S.V. Russian arctic LNG: new trends and opportunities. Resursy Evropeiskogo Severa. Tekhnologii i Ekonomika Osvoeniya. 2018;(1):11–18. (In Russ.)

15. Novak A. Window of opportunity for Russia. Neftegazovaya vertikal’. 2018;(1):20–26. (In Russ.)

16. Vazhenina L.V., Shanshaeva E.A. The fourth line of the Yamal-LNG plant became a technological experiment of Novatek. In: New science generation. Proc. II Inter. Sci. Pract. Conf. Petrozavodsk, December 25, 2019. Petrozavodsk: MTNP «Novaya Nauka»; 2019:104–107. (In Russ.)

17. Fadeev A., Cherepovitsyn A., Larichkin F. Actual questions of modern specialists’ preparation for Arctic shelf development. V mire nauchnykh otkrytiy. 2011;(3-1):446–454. (In Russ.)

18. Fadeev A.M. Production support in the Arctic: a strategic approach. Strategizing: Theory and Practice. 2021;1(1):15–27. (In Russ.). https://doi.org/10.21603/2782-2435-2021-1-1-15-27

19. Rybakova M. Liquefy in Russian. Kommersant. October 25, 2018. (In Russ.). URL: https://www.kommersant.ru/doc/3770589 (accessed on 06.02.2022).

20. Large natural gas liquefaction plants. Energetika. TES i AES. [NY, ND]. (In Russ.). URL: https://tesiaes.ru/?p=7963 (accessed on 06.02.2022).

21. Martsinkevich B. Arctic cascade as a technology. Geoenergetika.ru. November 8, 2018. (In Russ.). URL: https://geoenergetics.ru/2018/11/08/arkticheskij-kaskad-kak-texnologiya/ (accessed on 06.02.2022).