Climate activists who scored big against Western majors last week had some unlikely cheerleaders in the oil capitals of Saudi Arabia, Abu Dhabi and Russia.

Defeats in the courtroom and boardroom mean Royal Dutch Shell (RDSa.L), ExxonMobil (XOM.N) and Chevron (CVX.N) are all under pressure to cut carbon emissions faster. That’s good news for the likes of Saudi Arabia’s national oil company Saudi Aramco (2222.SE), Abu Dhabi National Oil Company and Russia's Gazprom (GAZP.MM) and Rosneft (ROSN.MM).

It means more business for them and the Saudi-led Organization of the Petroleum Exporting Countries (OPEC).

"Oil and gas demand is far from peaking and supplies will be needed, but international oil companies will not be allowed to invest in this environment, meaning national oil companies have to step in," said Amrita Sen from Energy Aspects consultancy.

read more

Climate activists scored a major victory with a Dutch court ruling requiring Royal Dutch Shell to drastically cut emissions, which in effect means cutting oil and gas output. The company will appeal. read more

The same day, the top two U.S. oil companies, Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N), both lost battles with shareholders who accused them of dragging their feet on climate change. read more

"It looks like the West will have to rely more on what it calls "hostile regimes" for its supply," joked a high-level executive from Russia's Gazprom oil and gas group, referring to energy companies around the world owned completely or mostly by the state.

Saudi Aramco, Adnoc and Gazprom all declined to comment. Oil major Rosneft, in which the Russian state has the biggest stake, also declined to comment.

A senior Saudi Aramco staffer said the court ruling would make it easier for OPEC to ramp up production.

"It is great for Aramco," the staffer said.

Western oil majors like Shell have dramatically expanded in the last 50 years, as the West sought to cut its reliance on energy from the volatile Middle East, and from Russia.

Those same Western energy majors, including BP and Total, have set out plans to sharply reduce emissions by 2050. But they face growing pressure from investors to do more to meet U.N.-backed targets to limit global warming.

Saudi Aramco, listed on the Saudi bourse but majority state owned, is not under the same sort of pressure to cut its carbon emissions, although the kingdom's rulers aim to sharply increase the country's use of renewables.

Gazprom expects demand for natural gas to grow in the coming decades and for it to play a bigger role in energy consumption than renewable sources and hydrogen. read more

Western oil majors control around 15% of global output, while OPEC and Russia have a share of around 40 percent. That share has been relatively stable in the last decades as rising demand was met with new producers like smaller private U.S. shale firms, which today face similar climate-related pressures.

PEAK DIVIDENDS

Since 1990, global oil consumption has grown to 100 million barrels per day from 65 million bpd, with Asia providing the lion's share of growth.

Countries such as China and India have made no pledges to reduce oil consumption, which on a per capita basis is still a fraction of the levels in the West. China will rely heavily on gas to cut its huge coal consumption.

The International Energy Agency, which looks after energy policies of the West, issued a stark appeal last month to the world to essentially scrap all new oil and gas developments. But it gave no clear formula on how to reduce demand.

Despite pressure from activists, investors and banks to cut emissions, Western oil majors are also tasked with maintaining high dividends amid heavy debt. Dividends from oil companies represent significant contributions to pension funds.

"It is vital that the global oil industry aligns its production to the Paris goals. But that must be done in step with policy, changes to the demand side, and the rebuilding of the world’s energy system," said Nick Stansbury from Legal & General, which manage £1.3 trillion ($1.8 trillion) in assets on behalf of savers, retirees and institutions.

"Forcing one company to do so in the courts may (if it is effective at all) only result in higher prices and foregone profits," he said. Legal & General, one of the world's largest fund managers, holds assets in most oil majors.

Climate lawsuits have been filed in 52 countries in the past two decades, with 90% of those in the United States and European Union, risk consultancy Verisk Maplecroft said.

"In the West, energy investments will peak on fears and concerns over regulations and court rulings. Then, we will see peak dividends," said the Aramco executive. Aramco pays the highest annual dividend of $75 billion.

Over the past five years, the IEA has been predicting a large oil shortage and an oil price spike due to a lack of investments following a 2014-2017 oil price crash.

An oil price rally coupled with the declining strength of oil majors would mean a large wealth transfer from the West to countries like Russia and Saudi Arabia, until demand starts declining not only in the West but in Asia too.

"The same oil and gas will still be produced. Just with lower ESG standards," said an executive from a Middle Eastern producer, who previously worked for an oil major, referring to environmental, social and governance performance measurements.

Our Standards: The Thomson Reuters Trust Principles.

June 1 (Xinhua) -- Mongolia's COVID-19 tally rose by 790 to 59,229 in the last 24 hours, the country's health ministry said Tuesday.

The national death toll climbed to 297 with seven more fatalities, and total recoveries rose to 50,763 as 327 more patients had recovered, according to the ministry.

The Asian country launched a nationwide COVID-19 vaccination campaign in late February, aiming to cover at least 60 percent of its population of 3.3 million.

More than 1,858,500 Mongolians have so far received their first dose, and over 1,306,400 have been fully vaccinated.

From today (1 June), Mongolia is officially re-opening its borders and starting international flights to over 10 countries including the USA, Turkey, Brazil, Thailand, Greece, India and Australia thus allowing international arrivals.

Currently, over 110 countries such as Russia, China, Japan and European countries are partially or fully closed amid concerns related to the coronavirus pandemic. Therefore, Mongolian Government is actively discussing with those countries through diplomatic lines to confirm vaccine certification for those who get vaccination against Covid-19.

As early as 27 January 2020, Mongolia closed its borders with China, only four days after Chinese authorities locked down Wuhan. By the time it recorded its first case on 10 March 2020, and as the WHO declared a global pandemic, Mongolia was already shut off from the world. As a result of its prompt response to the risk, and the government’s readiness to introduce unpopular – yet effective measures – the country if 3.3 million was able to prevent local transmission until November 2020.

RIGA - Latvia and Mongolia must seize the all opportunities to expand cooperation, including on the parliamentary level, which would also pave the way for closer business and education cooperation, Saeima Vice Speaker Dagmara Beitnere Le-Galla (New Conservative Party, JKP) said while meeting with Mongolia's new Ambassador to Latvia Barkhas Dorj.

As LETA was told at the Saeima press office, Beitnere-Le Galla noted Latvia's transport infrastructure and geographical location providing convenient access to Northern Europe. The ambassador agreed on the significance of transport in Latvian-Mongolian cooperation, voicing support for the planned Latvian-Mongolian transport agreement.

The officials also discussed prospects for cooperation on education, with the ambassador expressing satisfaction that young people from Mongolia are also studying at Latvia's universities. He said that in the future they will become envoys promoting cooperation between Latvia and Mongolia.

Beitnere-Le Galla stressed culture as an important area for cooperation, noting Mongolia's rich heritage. The ambassador promised to step up cultural cooperation between the two countries at a time when they are marking the 30th anniversary of their diplomatic ties. The ambassador also underlined the two countries' common democratic values.

Ulaanbaatar, Mongolia--(Newsfile Corp. - May 31, 2021) - Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) is pleased to share that Executive Vice President & Director, Aneel Waraich, and Senior Vice President & CFO, Jeremy South, will be participating in a virtual fireside chat hosted by Alliance Global Partners' Managing Director and Head of Metals and Mining Research, Jake Sekelsky on Thursday, June 3rd, 2021 at 10 am EST.

As Asia's newest gold producer, the Steppe team is thrilled to share their story with Alliance Global Partners' investors. After achieving one year of production amidst a global pandemic, with solid cashflow in the bank and newly-doubled resource estimates of 2.45M oz Au Eq, Steppe Gold is embarking on its Phase 2 expansion plans this year.

About Steppe Gold Limited

Steppe Gold (TSX: STGO) (OTCQX: STPGF) is Mongolia's premier precious metals company, holding a portfolio of gold and silver projects covering over 20,000 hectares, including the Altan Tsagaan Ovoo Project (ATO Project) and the Uudam Khundii (UK) property.

Centerra Gold Inc on Monday said Kyrgyzstan units Kumtor Gold Co and Kumtor Operating Co have commenced bankruptcy proceedings in a US court following nationalization of the miner’s Kumtor gold mine by the former Soviet republic.

Centerra said the Chapter 11 filing would have no financial or operational impact on it or any other areas of its business, including the Mount Milligan mine in Canada, the Oksut Mine in Turkey and its molybdenum business in North America.

SIGN UP FOR THE PRECIOUS METALS DIGEST

Kumtor, Kyrgyzstan’s largest foreign investment project, was operated by Centerra. However, the government of the Central Asian country seized the mine, prompting the Canadian miner to seek redress in an international court.

Kyrgyz lawmakers in early May passed a law giving the state power to temporarily take control of the mine and appoint “external management” to address alleged environmental and safety problems.

Centerra said bankruptcy proceedings would prevent further efforts by the Kyrgyz government to strip Kumtor Gold of its assets or otherwise “improperly dispose” of the Kumtor mine in violation of its investment agreements with the company.

Representatives for the Kyrgyz government could not immediately be reached by Reuters for comment.

Centerra said the court-supervised restructuring provides for a worldwide automatic stay of all claims against the Kyrgyz business units, which it said are currently solvent.

The Canadian miner said that while it hopes the process will facilitate talks, it will continue to pursue arbitration proceedings to enforce agreements with the Kyrgyz government.

“Those agreements are governed by New York law, and we expect the U.S. court proceedings will serve to further protect Centerra’s interests under their terms pending a restructuring or other resolution of the dispute,” Centerra Chief Executive Scott Perry said in a statement.

Centerra has suspended its 2021 production guidance and three-year outlook for Kumtor, which last year produced more than 556,000 ounces (15,762 kg) of gold.

The miner said it would also conduct a strategic review of its ownership of the subsidiaries “in light of recent events involving the Kumtor mine”.

(By Jeff Lewis and Mike Spector; Editing by Christopher Cushing)

On May 31, Minister of Foreign Affairs B.Battsetseg arrived in Moscow, Russia. The Foreign Minister was welcomed by officials of the Embassy of Mongolia in Russia and the Russian Ministry of Foreign Affairs at Moscow Domodedovo Airport.

Minister of Foreign Affairs B.Battsetseg held a meeting with Aide to the President of the Russian Federation, State Council Secretary I.Ye.Levitin at the Embassy of Mongolia in Russia, discussing bilateral political and economic relations.

Per the decree of President of Mongolia Kh.Battulga in recognition of the significant contributions made in developing the relations between Mongolia and Russia, Minister B.Battsetseg also presented the Order of the Red Banner of Labour to Aide to the President of Russia, State Council Secretary I.Ye.Levitin, and the Order of the Polar Star to Referent at the Administrative Directorate of the President of Russia M.Yu.Morgunov.

On the same day, Minister of Foreign Affairs appeared on a TV show, ‘Strana Industriya (Industry Nation)’, and gave an interview to RIA Novosti news agency, in which she spoke about the current state of Mongolian-Russian relations, and opportunities for further development as well as about the policy and measures being implemented by the Government of Mongolia against the pandemic.

The Foreign Minister will be holding talks with her Russian counterpart S.V. Lavrov today.

China has long been a massive player in global cryptocurrency markets. Bitcoin miners have been drawn to cheap electricity prices, which they use to power the huge computers they need to produce more bitcoin. In fact, it's estimated that 70 percent of the world's cryptocurrency supply comes from Chinese digital mines.

Credit: ReutersCredit: Reuters

Credit: Reuters

At least that was the case until March, when the province of Inner Mongolia banned bitcoin mining. This week Chinese Vice Premier Liu He put the nail in the coffin with a new crackdown on cryptocurrency mining. State media cited the role of bitcoin in illegal activities and crypto’s huge energy demands as reasons for the decision.

The price of bitcoin has since plummeted and a major exodus of crypto miners is getting underway.

Interestingly, there is now talk of a major opportunity for Mongolia. Could it become a new home for cryptocurrency producers fleeing China?

Plans are already underway

Bat-Orgil Turbold – a former business executive of a multinational company and currently the Dacheng Dentons Mongolia Law Firm Senior Counsel – spotted this opportunity a while ago. He is coordinating a group of companies that want to build a server farm, complete with its own power plant, in Sukhbaatar aimag -

a far eastern province sharing a border with Xilingol, Inner Mongolia, China.

"Mongolia is perfect for developing server farms," Bat-Orgil said to Mongolia Weekly. "Data is growing exponentially and its storage and management is becoming critical. And Mongolia can offer that service."

The reason, he explains, is the climate in south-east Mongolia. The ambient humidity rarely dips below 30 percent or above 70 percent, which is perfect for server farms – below 30 increases the risk of static charges and above 70 causes condensation in critical equipment.

"Almost eight months of the year in Mongolia is considered to be the cold season," he adds. "Server farms elsewhere use around 30-40 percent of their electricity supply just to cool themselves down. So Mongolia has the perfect climate."

But there's an obstacle – an unreliable electricity supply and a lack of renewable energy infrastructure.

"We don't have much sustainable electrical power in Mongolia," Bat-Orgil said. "And demand is cyclical in nature – consumption increases in the winter and between certain hours every evening."

To get around the issues in the Mongolian grid, Bat-Orgil and the team he is coordinating (called Maverick Civic Initiative) want to build a whole new coal-fired power plant to power a server farm and put Mongolia on the digital map.

"This could be a new economic engine for Mongolia," he said. "We're planning to build a 1.2 gigawatt power plant next to a big crypto farm."

While Bat-Orgil can't go into specifics on who is involved in Civic Initiative (citing commercial sensitivities), he says one company that's involved already owns a power plant in China and has bought equipment to build the new plant in Sukhbaatar aimag.

"We're waiting for the border to open to bring in the equipment," he said. "Then it will take a year to build the facilities and install it."

When asked whether businesses will be dissuaded from investing in a new coal-fired power station given the global shift to green energy, Bat-Orgil acknowledges the trend and confirms that the renewable energy plants will be built as a second tier..

"I understand the world is moving to renewables, but currently, the cost of renewable energy is prohibitively high for Mongolia to start the project with. Coal is the main commodity available to us right now," he explained. "Although the initial phase of course is coal power, there is another group working on renewable energy and other technologies, like fuel cells."

"Given today’s rate of scientific discoveries and advancements surely new and most importantly affordable technologies will be available soon. On the other hand, coal plant technologies are becoming greener as well," he said. "We aren't going to stop at 1.2 gigawatts but will increase it exponentially over time."

Beyond crypto mining

These plans are extremely ambitious. Crypto mining is a competitive business and other regions, particularly North America, are already attracting interest from Chinese miners looking for a new home.

But Civic Initiative's ambitions don't stop with crypto. The consortium reportedly wants to use the power plant-server farm to kick-start a whole economic 'enclave' in Sukhbaatar aimag; essentially a brand new digital city on the steppe, hosting data from giants like Google and Amazon.

"These companies are having political problems in China," Bat-Orgil said. "And who can predict what will happen in Russia? Coming to Mongolia is a win-win for them and us."

Bat-Orgil even talks about plans to eventually build a 'smart city' for the thousands of people he believes will be employed in this enclave, including a hospital, educational and research facilities, accommodation and more.

"We're already in the process of negotiating with Japanese universities to establish a relationship," he said. "There will also be a focus on agriculture and tourism. As we develop, we'll aim for an organic food supply chain and we're working with some companies on that, including one based in the UAE."

Where will the money come from?

According to Bat-Orgil, there is 'plenty of money' in the world at the moment but Mongolia's political instability is an issue for attracting investment into this mega-project.

"One goal of this initiative is to establish an environment that provides the stability investors need," he said.

To do this, Bat-Orgil outlines two strategies; run the place autonomously from the government, and set up an employee-owned company to attract international interest.

Independence, he says, will be achieved in a similar way to the Oyu Tolgoi mine or International School of Ulaanbaatar – having stricter and more comprehensive rules and by-laws that are in compliance with national legislation, but are geared towards global best practices and international private and customary laws, given the majority of targeted investors are foreign.

The city will be structured not as an administrative unit, he says, but as a territory of a holding company that consists of numerous operating, employee-owned companies that run different types of businesses.

According to Bat-Orgil, this will allow much broader freedom and independence from political interference into commercial affairs and governance issues; which, he argues, rests on the basis that national legislation also doesn’t prohibit use of another country’s commercial laws between contracting parties.

Controversial? Perhaps.

"Legally the government can't interfere with the company’s internal affairs, unless we break the law," Bat-Orgil said. "We'll pay taxes, but business operations won't involve government interference. It's a legal framework for investors that is clear, stable and transparent."

Employee ownership in the company is the second half of this investment plan.

"We're offering a concession build-operate-transfer (BOT) model for investors," he explained. "Once the initial investment is completely or partially (that is being elaborated by the economic and business development working group ) recuperated, up to 49 percent ownership will be gradually transferred over a period of time to employees. This is one of the legal issues we're working on – how to make this internationally appealing."

Bat-Orgil says they're hoping to have international grants coming in April 2022, and if all goes well, to start building the plant not long afterwards. He says initial operations will hopefully begin in 2023.

"It's 'democracy 2.0'," he said. "This is unique. Nobody has tried this before."

BY: Ewen Levick

In terms of drama, the outcome of the May grand sumo tournament couldn't have been scripted any better. The battle for the Emperor's Cup went right down to the wire, with two ozeki champions duking it out on the final day. In the end, fortune favored a wrestler who has truly risen from the ashes.

State of emergency still affecting Japan's national sport

This was the first May tournament in two years after last year's was canceled due to the coronavirus pandemic. Tokyo remains under a state of emergency, and this time, the action during the first three days of the 15-day contest unfolded without any spectators. After the government relaxed some measures, a maximum of 5,000 were allowed inside the venue. The wrestlers were happy and appreciative to compete in front of fans once again.

Terunofuji was in the spotlight even before the tournament started. The 29-year-old Mongolian had just returned to the second-highest rank of ozeki after winning the previous contest in March. He hadn't competed as an ozeki for 20 tournaments. All manner of physical ailments saw him demoted right down to the second-lowest jonidan division. But thanks to his never-say-die attitude, Terunofuji miraculously re-entered the top division last July. Ever since, he's been nothing short of spectacular.

By Day 13, Terunofuji had a comfortable two-win lead over ozeki Takakeisho and maegashira rank-and-filer Endo. Terunofuji had the chance to clinch the championship on the penultimate day, but lost to Endo. The Mongolian ozeki still entered the final day as the sole leader, with 12 wins and 2 losses. On Day 15, he squared off against Takakeisho, who had 11 wins and 3 losses. Within a matter of seconds, Takakeisho thrust Terunofuji down to the surface – meaning the two wrestlers were dead even at 12 wins and 3 losses. In the ensuing playoff, Terunofuji came out on top, slapping down his opponent to capture his second consecutive and fourth overall top division title. It was also his first Emperor's Cup as an ozeki.

Terunofuji beating Takakeisho in a playoff on Day 15

Terunofuji defeats Takakeisho in a playoff on Day 15

With back-to-back titles under his belt, Terunofuji now has the chance to become a yokozuna grand champion in July. At his victory ceremony, the wrestler was asked how he feels about his chances. "I'll work hard to prepare for the next tournament, and when it's time to compete, I'll simply do my best. Even if I don't make it to yokozuna, that's ok. I'll keep my head up and continue working hard," he said.

Terunofuji appears to have already adopted a go-for-broke mindset. Even if he comes up short, he's confident he can regroup and try again somewhere down the road.

Assessing the other ozeki champions

Currently, there are four ozeki on the official banzuke ranking list. Terunofuji has shown he's the real deal – but what about the others?

Takakeisho is perhaps the only other ozeki performing at a level befitting his rank. The 24-year-old won the November tournament, and has been in contention in four of the past five meets. It shows consistency, and he deserves a lot of credit. Takakeisho is a grafter, so I expect him to continue getting better and stronger. Perhaps he'll even rise to the top rank of yokozuna in the not-too-distant future.

Shodai, who finished with a losing record in March, entered the May contest as a kadoban, which meant he had to score at least 8 wins to retain his ozeki status. He finished with 9 wins and 6 losses – good enough to keep his rank, but nowhere near enough to contend for the championship. Shodai won last year's September tournament, but hasn't made an impact since. He must now get his act together and prove he's worthy of sumo's second-highest rank.

Ozeki Asanoyama has been making headlines for all the wrong reasons. He was forced to sit out from Day 12 after it was reported that he had frequented nightclubs during the current state of emergency. The scandal was compounded when Asanoyama told his sumo elders that the reports were groundless. After a further hearing, he came clean.

Asanoyama

On Day 12, Asanoyama withdrew from the competition after he was found to have broken the sumo association's anti-coronavirus guidelines.

After being expelled from the tournament, Asanoyama apparently called his father to apologize. He told his old man that he'll accept whatever penalty comes his way. He also said he will try his best to focus on sumo, not nightlife, if he's allowed to stay part of the association. Asanoyama went on to say that even if he gets demoted to a much lower division, he has no intention of quitting. Rather, he wants to remain active and fight as best as he can. Let's hope he means it – because nobody wants to see this talented wrestler's career end in such a sorry manner. Ultimately, it would be a huge disappointment to the fans.

The board of directors will conduct a further investigation before deciding what to do. The 27-year-old can expect a harsh penalty, because the rank of ozeki carries a great deal of responsibility.

Hakuho to return in July

Yokozuna Hakuho has now been absent for six consecutive tournaments. He missed the May contest due to a knee injury. The grand champ says he's rehabilitating, and will try his best to return in July. Let's hope he does, because he's running out of excuses. I think it's now time for the 44-time champion to shape up or ship out.

Special prize winners

Aside from the Emperor's Cup, each tournament comes with three other special prizes. But this time, the Outstanding Performance Award and the Fighting Spirit Prize weren't given to anyone.

The Technique Prize went to Wakatakakage and Endo. The former defeated two ozeki and racked up a total of 9 wins thanks to his splendid pushing attacks. He's now expected to debut at the fourth-highest rank of komusubi in July. Endo, meanwhile, used a wide range of nifty moves to beat two ozeki, win 11 bouts and stay in contention right until the end.

Special prize winners: Wakatakakage & Endo

The Technique Prize recipients: Wakatakakage on the left, and Endo on the right.

July tourney outlook

The next tournament will take place a week earlier than normal to avoid clashing with the Tokyo Olympics. It will be back in Nagoya for the first time in two years. Last July, it was held in Tokyo to prevent the spread of the coronavirus.

Without question, all eyes will be on Terunofuji as he guns for promotion to yokozuna. Three straight championships would mean there are no ifs and buts about his top-rank credentials. Even if he fails to claim the title, I believe he could still earn promotion with 13 or 14 wins, considering his elite performances over the past year. I think Terunofuji has a great chance. Right now, he's firing on all cylinders, and it's hard to pick out anybody who can stop him.

Fans will also be anxiously waiting for the return of top dog Hakuho. I hope he returns in blistering form and proves he's far from finished. I would relish the chance to see him lock horns with Terunofuji in what would surely be a blockbuster bout.

Popular wrestler Ura is expected to return to the top division after winning the championship in May's second-tier juryo division. He's been hampered by so many injuries, but is now healthy and on course to make an immediate impact with his acrobatic moves and unconventional techniques. He's been away from the top division for nearly four years, and fans will be thrilled to once again see him dancing with the big boys.

Rest in peace Hibikiryu

Hibikiryu, who was competing in the third-lowest division of sandanme, passed away on April 28 due to acute respiratory failure. He was 28. The wrestler fell unconscious after landing face first during a match in the March tournament. He was taken to a hospital, but never recovered.

The Japan Sumo Association took his death extremely seriously. On May 7, a drill saw about 60 officials re-examine how to care for injured wrestlers, including CPR. Accident response experts provided instructions to stable masters and association members.

Hibikiryu

Hibikiryu fell unconscious after a match in the March tournament. He passed away on April 28.

Many people have criticized the way the association handled the accident. Stable masters at the scene stood there looking clueless. They eventually called for medical attention, but it took nearly 5 minutes for a doctor to arrive. The yobidashi ring announcers turned Hibikiryu's body over, which is never a good thing when a person is suspected of sustaining an injury to the head or neck.

I earnestly recommend having a medical expert ringside at all times, like we see in other contact sports. That way, whoever gets injured can be seen right away. Right now, this does not happen in sumo. If the association is serious about making health and safety the top priority, then I don't see any reason to not introduce much-improved measures – before anything like this can happen again.

(CNN)In March, world trade was thrown into chaos by a boat. The Ever Given, a container ship nearly as long as the Empire State Building is tall, ran aground in the Suez Canal in Egypt. It was stuck for six days, disrupting global supply chains.

In an effort to avoid a repeat of the event, in mid-May, the Suez Canal Authority (SCA) announced it had started dredging work to widen and deepen the southern part of the canal where the Ever Given was jammed.

The 30-kilometer-long area will be widened by 40 meters (131 feet) to the east and deepened to 72 feet, up from 66 feet, according to the SCA. Plans also include extending the second lane near the Great Bitter Lake, which opened in 2015, by 10 kilometers (6 miles) -- allowing two-way traffic along an 82 kilometer (51 mile) stretch.

The work is intended for "maximizing the canal's efficiency and shortening the vessels' transit time, as well as raising the navigation safety," said a press release from the SCA. But there are still questions as to whether this will be enough to prevent future blockages.

"The widening of the canal is a smart move," Sal Mercogliano, a maritime historian at Campbell University in North Carolina, tells CNN. "The question that I have is if you widen the canal, then will vessel operators make their vessels bigger?"

Ship size

Over the past 50 years the container carrying capacity of the biggest ships has increased by 1,500%, and doubled over the past decade alone, according to shipping insurer Allianz Global Corporate and Speciality.

The largest ships can carry up to 24,000 containers and measure over 200 feet at their widest point -- wider than a standard American football field. The Ever Given -- which can hold up to 20,000 containers but was only carrying 18,000 at the time of grounding -- is in the top 1% globally in terms of vessel size, measuring 400 meters (1,312 feet) long and 59 meters (194 feet) wide.

Shipping companies argue that bigger ships are more efficient at carrying large volumes of cargo across the globe and -- in normal conditions -- they are able to pass through the Suez.

But "it's a very narrow margin of error," says Mercogliano. If there are strong winds -- as in the case of the Ever Given -- or bad visibility, ultra-large vessels risk getting stuck.

The rising e-waste crisis is being reckoned with in Rwanda, one gadget at a time

The rising e-waste crisis is being reckoned with in Rwanda, one gadget at a time

The case of the Ever Given illustrated the potential repercussions of a blockage. At the time, shipping news journal Lloyd's List estimated the ship was holding up roughly $9.6 billion of goods each day. The Suez Canal handles about 12% of global trade, with around 19,000 ships passing through each year.

The extension proposed by the SCA will help reduce the risk of ships getting stuck, but it will not erase it, says Ioannis Theotokas, a professor in the Department of Maritime Studies at the University of Piraeus, Greece.

"It will never be enough unless a second lane is opened in the southern part," he tells CNN. But he believes that container ships are unlikely to get any bigger, so further widenings may not be necessary.

"Increasing the size of ships caused extensive investments in ports to support them. A further increase would require further investments," which are not readily available, he adds.

Maersk, the world's largest container shipping line, told CNN it welcomes plans to widen and deepen the southern part of the passage.

"Increasing the stretch with double lane will enable more vessels to transit a vital canal that receives about 10% of the world trade flows. The deepening and widening will reduce the risk of groundings," says Aslak Ross, head of HSE & Marine Standards at A.P. Moller-Maersk.

He adds that "the current vessel size matches our network demand and (the company) has no plans for transiting larger vessels than what we do today through Suez Canal."

Future routes

However, the Ever Given incident did prompt discussion of alternative routes. The canal's strategic position -- connecting the Mediterranean to the Red Sea and offering the shortest sea route between Europe and Asia -- is key to its influence.

Without the Suez, shipments between the two continents would have to travel around the Cape of Good Hope at the southern tip of Africa. Some shipping companies opted for this route while the Suez was blocked, despite it taking more than double the time.

Forgotten for half a century, this rare bean could save Sierra Leone's coffee industry

Forgotten for half a century, this rare bean could save Sierra Leone's coffee industry

"It's no coincidence that soon after the Ever Given incident, Russia made comments of the attractiveness of alternative routes, namely the Northern Sea Route," says Theotokas. That route runs along the Arctic coast of Russia, from the Kara Sea to the Bering Strait.

An official from the nuclear firm Rosatom, which is in charge of the development of the route, told a Russian news agency that "the Suez precedent has shown how fragile any route between Europe and Asia is," and urged for development of alternative routes like the Northern Sea Route.

Soon after these comments, shipping company MSC, the world's second largest container line, doubled down on its commitment to avoid the Northern Sea Route on environmental grounds. Arctic shipping could increase pollution and contribute to melting sea ice.

Theotokas believes the position of the Suez as a world trade route will remain strong.

"Shipping companies are always prepared to handle risk such as Ever Given," he says. The SCA's extension will just make them more comfortable in doing so.

"The widening of the canal will make it easier for salvage operations ... even if it does not erase the risk of repeating the incident," he says.