Arctic LNG-2 liquefaction line can be used in Murmansk LNG – Kommersant

Arctic LNG-2 liquefaction line can be used in Murmansk LNG – Kommersant

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NOVATEK is considering the possibility of reducing the number of liquefaction lines at the Arctic LNG-2 plant to two, and using a third at Murmansk LNG, reports Reuters citing an industry source.

The second and third liquefaction trains of Arctic LNG 2 were scheduled to begin operation in 2024 and 2026, respectively. Construction of the second line is currently underway at a plant in the village of Belokamenka in the Murmansk region. The agency’s source said that now all attention at NOVATEK is focused on Murmansk LNG, because the operation of this plant does not require ice-class tankers, unlike Arctic LNG-2.

According to plans, the productivity of Murmansk LNG will be 20.4 million tons of LNG per year, which exceeds the planned indicators of Arctic LNG-2 (19.8 million per year). According to the forecasts of the agency’s interlocutors, the first two lines of the Murmansk plant should start operating in 2027, the third – in 2029.

April 2 Reuters citing two sources reportedthat NOVATEK has suspended production at the Arctic LNG-2 project due to sanctions and a shortage of tankers. One of the agency’s interlocutors noted that construction work at the site is still ongoing. On the same day, Vedomosti sources statedthat gas production at Arctic LNG-2 dropped sharply in the first two months of the year due to delays in LNG shipments.

In February reportedthat NOVATEK cannot receive three gas carriers from the Korean shipyard Hanwha Ocean, since their customers are Sovcomflot structures that are subject to US sanctions. The delivery of three more tankers was delayed due to labor shortages.

Arctic LNG 2 is NOVATEK’s second major LNG export project. On November 2, 2023, it came under US sanctions, which included a ban on all operations with Arctic LNG 2. In December, NOVATEK warned customers of force majeure related to supplies from the project. After this, according to Kommersant, the responsibilities for financing and execution of offtake contracts for LNG refused foreign shareholders of Arctic LNG 2 are the French TotalEnergies, the Chinese CNPC and CNOOC, as well as a consortium of the Japanese Mitsui and JOGMEC.

About the situation on the Russian gas market – in the material “Kommersant” “Gas comes back from the cold”.

Erdni Kagaltynov

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