The US is using sanctions to disrupt Russia's Arctic LNG 2 project. Washington is trying to prevent Moscow from getting the specialized tankers needed to transport the gas.
What is known about Putin's Arctic LNG 2 gas project
As noted, since September, the US has imposed four waves of sanctions against the Russian LNG industry.
Under the sanctions came the operating companies of the Arctic LNG 2 project, storage vessels, shipping companies that, in their opinion, seek to purchase specialized vessels for the project, as well as companies working on a second facility in the Baltic Sea area.
Completing the construction of the second and third stages of "Arctic LNG 2" will be a difficult task. According to Rystad, Novatek can complete the construction of the first stage, since it started before the full-scale invasion of Ukraine.
The consulting company expects significant delays during the construction of the second and third phases. Maintenance of the project in conditions of limited access to spare parts can also be a difficult task, the publication writes.
At the same time, Putin intends to more than triple LNG exports in the coming years. Its goal: to attract more money to finance the war against Ukraine and to compensate for the decline in Russian gas exports through pipelines.
According to consultancy Rystad Energy, capacity of approximately 32 million tonnes per year is currently under construction on top of the existing 29 million tonnes.
Last December, the first of three liquefaction plants, known in the industry as "trains", was completed on Arctic LNG 2 and production started at the facility. This event was perceived by analysts and Russian officials as a victory for Moscow.
However, a few months later, the victory does not look so certain, because Russia did not receive the ships it needed for transportation. Hanwha Ocean, a South Korean shipbuilding company, said it had canceled plans to build three vessels for Arctic LNG 2 due to sanctions. Japanese shipping company Mitsui OSK Lines said it would also not provide vessels for Arctic LNG 2, although it planned to charter three carriers.
Due to a logistical problem, LNG production was suspended. Russia is trying to build its own aircraft carriers at a shipyard on the Pacific coast, but has run into problems created by sanctions. For example, Moscow cannot get membranes for storage facilities produced by the French company Gaztransport & Technigaz.
Novatek, the largest Russian LNG producer, has ceased operations
Novatek, Russia's largest liquefied natural gas (LNG) producer, has suspended operations at its newest Arctic LNG 2 plant due to sanctions and a shortage of LNG tankers.
One of the interlocutors of the agency clarified that the line will not work at least until the end of June.
At the same time, construction work on the project continues, two more lines are planned to be delivered to the site by sea from the port of Murmansk later. Together, they are to produce 19.8 million metric tons of LNG per year and 1.6 million tons per year of stable gas condensate.
According to the agency, the main problem of Arctic LNG 2 is currently the shortage of special tankers capable of transporting liquefied gas cooled to minus 163 degrees Celsius.
