The Russian liquified natural gas (LNG) producer Novatek commenced operations at its Arctic LNG 2 project even after the U.S. imposed sanctions on the company in November 2023.
According to Offshore Energy, Novatek sent force majeure notices to LNG buyers in December after the U.S. imposed sanctions on the project. The LNG 2 project’s foreign partners also declared force majeure on their participation in the venture.
Not only have operations already begun at the project, but its first shipments are scheduled to be delivered during the first quarter of 2024, said Russian Deputy Prime Minister Alexander Novak during an interview with the state-run media outlet Rossiya 24.
Novatek has a 60% stake in the Arctic LNG2 project with TotalEnergies, CNPC, CNOOC and Japan Arctic LNG each holding another 10% stake in the venture.
The facility, located on the Gydan peninsula near the Arctic Circle, is expected to play a key role in Russia’s attempt to triple its LNG production to more than 100 million tons by the end of the decade.
The project includes the construction of three LNG trains that each boast a carrying capacity of 6.6 million tons per annum (MTPA). Twenty-one ice-class tankers were also ordered for the project, including six vessels at South Korea’s Hanwha Ocean and 15 ships at Russia’s shipyard Zvezda.
Though shipbuilder Samsung Heavy Industries stopped production of equipment and blocks for 10 of the 15 Arctic LNG carriers contracted with Zvezda, a Samsung spokesperson clarified that the contract has not yet been formally canceled.
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- Source: https://www.supplychainbrain.com/articles/38773-russian-lng-producer-begins-arctic-operations-despite-us-sanctions
