Parameters of Sustainable Development: Case of Arctic Liquefied Natural Gas Projects

Alexey Cherepovitsyn,Olga Evseeva

doi:10.3390/resources10010001

Alexey Cherepovitsyn, Olga Evseeva

Open Access

https://doi.org/10.3390/resources10010001

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Abstract

Effective management of the social and economic development of the Arctic zone of the Russian Federation is today a significant scientific and practical task. It requires an integrated approach to meet the expectations of the state, business and society. The main drivers of growth for remote Arctic territories are large investment projects, which not only create production and sectorial results, but also stimulate the development of related sectors of the economy. Additionally, they contribute to the formation of modern infrastructure in the region and create conditions for the broad introduction of innovative technologies. The current problem with territorial development strategic planning is the assessment of the results that have been achieved. This includes approved lists of indicators that do not allow for a full assessment of the impact of the implemented projects. Assessment on the achievement of the region goals is also murky. This indicates a lack of consistency in regional development management. This article defines the importance of the indicators for an assessment of sustainable development management. The model of achieving external effects in project activities is described. The concept of sustainability of large-capacity complexes for the production of liquefied natural gas (LNG) is also formulated. Based on the needs of micro- and macro-environment projects, a list of indicators for assessing the sustainability of LNG projects has been proposed. On the basis of the proposed indicator list, a sustainability analysis of three Arctic LNG projects was carried out. Based on the example of LNG production, it was concluded that approaches to assessing the sustainable socio-economic development of the Arctic region and its industrial systems are interrelated, but there are differences between them.

Highlights

The implementation of Russian strategic goals in the field of geopolitics, the economic development of Northern territories and a surge in hydrocarbon and other mineral raw materials production today is closely related to the development of the Arctic
Despite the fact that projects are initiated by companies, the assessment of their sustainability based on indicators of sustainable development at the corporate level is incorrect
We propose to evaluate the sustainability of an liquefied natural gas (LNG) project as the project’s ability to generate economic, social and environmental results that meet the expectations of stakeholders (Figure 4)

Summary

Introduction

The implementation of Russian strategic goals in the field of geopolitics, the economic development of Northern territories and a surge in hydrocarbon and other mineral raw materials production today is closely related to the development of the Arctic. The Arctic region has enormous energy and mineral resources concentrated in large and unique deposits [1,2]. Experts estimate that 20–25% of the world hydrocarbon resources are located in the Russian Arctic zone and today about 80% of gas and 60% of oil from the total production of the country are produced there [3,4]. Among the most important tasks of Arctic hydrocarbon projects is the socio-economic development of northern territories, extended reproduction, and effective use of mineral and raw materials resources. The technological development of industrial systems, ensuring the sustainability of natural ecosystems, and ensuring energy and national security of the country as a whole, are significant goals [9]

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