Navigating the Northern Sea Route

The Northern Sea Route (NSR) in Russia's Arctic offshore is one of the world's untapped shipping routes. The Russian government has a strategic objective of developing year-round shipping along the NSR to Asia. Russia wants to be a major global LNG player and investment in unlocking the potential of the NSR will be key to the success of NOVATEK's Yamal LNG and Arctic LNG-2 projects. Other projects will benefit too, such as Gazpromneft's Novoportovskoye oil project and coal and metals opportunities. Eighty million tonnes of hydrocarbons and metals could be exported annually from Russia using the NSR. Billions of dollars are being spent on developing advanced ice-breaking vessels and port facilities, including a transshipment terminal in Kamchatka. But can year-round shipping along the NSR be achieved? Is the NSR commercially competitive with alternative routes to Asia such as the Suez Canal? Which projects will contribute to the growth of shipping along the NSR? What risks are there?