Russian Arctic LNG 2 Project Resumes Gas Processing | OilPrice.com
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Breaking News:
Arctic LNG 2, the processing and export facility that was billed as Russia’s flagship LNG project, has gradually resumed gas processing after months of hiatus, Reuters reported on Tuesday, citing industry sources and satellite images.
Arctic LNG 2 has been under U.S. and EU sanctions since last year, and the project hasn’t been able to sell any cargo because of the sanctions.
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The first production train at the plant was shut in early October over the project developers’ inability to secure buyers amid the Western sanctions on Arctic LNG 2, according to one of Reuters’ sources.
The plant continues has now slowly resumed gas processing and keeps it at low rates as Russia expects what the Trump Administration would do with the sanctions.
Russian LNG developer and exporter Novatek, the majority owner of Arctic LNG 2, is looking to rebuild relations with the U.S. with the help of lobbyists, sources with knowledge of the matter told Reuters in December.
Hit heavily by sanctions, Arctic LNG 2 was put on ice last year and Novatek has struggled to sell any cargo to a buyer.
Located in the Gydan Peninsula, Arctic LNG 2 was considered key to Russia’s efforts to boost its global LNG market share from 8% to 20% by 2030-2035.
But the project has come under intensifying sanctions from the United States, which have put off any buyers that were previously considering buying cargoes from Arctic LNG 2.
The project has seen months of delays after the initial U.S. sanctions in November 2023 upended the company’s plans for production start-up and export timelines.
In August 2024, the U.S. State Department intensified efforts to derail Arctic LNG 2 exports by targeting companies involved in the development of the project and vessels found to have loaded LNG from the facility.
The U.S. designated multiple companies related to Arctic LNG 2 to further disrupt the project’s ability to produce and export LNG, as well as the project’s ability to procure critical LNG carriers.
By Charles Kennedy for Oilprice.com
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