NOVATEK suspended production at Arctic LNG-2 due to sanctions – Kommersant

NOVATEK suspended production at Arctic LNG-2 due to sanctions – Kommersant

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NOVATEK (MOEX: NVTK) suspended production at the Arctic LNG-2 project due to sanctions and a shortage of tankers, the agency reported Reuters with reference to two sources. One of them noted that construction work at the site is still ongoing.

According to Reuters, the main problem that NOVATEK faces in production is the shortage of tankers to transport liquefied natural gas (LNG). In February reportedthat the company 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.

Vedomosti citing sources today, April 2, reportedthat gas production at Arctic LNG-2 in January and February 2024 dropped sharply due to delays in LNG shipments. Last year, NOVATEK increased production in anticipation of the launch of the project, but in January of this year it decreased to 250 million cubic meters. m., and in February – up to 83 million cubic meters. m.

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 clients about force majeure related to supplies from the project. After this, according to Kommersant, the responsibilities for financing and fulfilling offtake contracts for LNG were abandoned announced 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.

Details – in the material “Kommersant” “It’s a rare tanker that will sail to Gydan.”

Lusine Balasyan

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