• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours How Far Have We Really Gotten With Alternative Energy
  • 8 days They pay YOU to TAKE Natural Gas
  • 4 days What fool thought this was a good idea...
  • 7 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 13 days The United States produced more crude oil than any nation, at any time.

Russia’s New LNG Project Can’t Begin Shipments Before March

Russia’s newest LNG export project, Arctic 2 LNG developed by Novatek, will not be able to start shipments before March as it is still waiting for at least one ice-breaker tanker that’s still in South Korea, Russian daily Kommersant reported on Thursday.

Earlier indications were that Arctic 2 LNG of Russia’s top LNG producer and exporter, Novatek, could begin its first cargo shipments to customers this month.

The U.S. sanctions, however, are holding the project’s start-up and are slowing progress as buyers refuse to take cargoes, according to anonymous sources who spoke to Kommersant.

The first shipment would depend on when the first Arc7 ice-breaker tanker from the South Korean shipyard Hanwha Ocean would arrive at the Russian LNG site on the Gydan Peninsula, the sources with knowledge of the situation told Kommersant. The tanker is still in Korea and even if it begins its journey to Russia now, it would take a month to reach the destination, the sources added.

The U.S. sanctions on Arctic LNG 2 have upended Novatek’s plans for production start-up and export timelines.  

In November, the U.S. Department of State designated limited liability company ARCTIC LNG 2, the operator of the Arctic LNG 2 Project, as part of additional sanctions against Russia “to further target individuals and entities associated with Russia’s war effort and other malign activities.” 

This has led some minority shareholders in the project, including France’s TotalEnergies, to declare force majeure on future deliveries.

Novatek holds a 60% stake in Arctic LNG 2. The other shareholders include CNOOC of China and China National Petroleum Corporation (CNPC), TotalEnergies, and Japanese firms Mitsui Group and Jogmec.  

ADVERTISEMENT

Potential contract cancellations for the construction of ice-class LNG carriers and U.S. sanctions on Arctic LNG 2 could hamper Russia’s plans to boost LNG sales now that its pipeline route to Europe is largely cut off.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News