US sanctions forced the Russian company PJSC "Novatek" to postpone gas deliveries from the promising "Arctic LNG-2" project
What is known about the stoppage of Russia's promising gas project due to US sanctions
Russian PJSC "Novatek", which heads the "Arctic LNG-2" project, sent a notice of force majeure to some buyers of the facility, the publication says.
The authors of the article note that the US sanctions introduced in November of this year make it impossible to supply gas from "Arctic LNG-2".
The publication's article explains that the force majeure circumstances declared by the representatives of Novatek PJSC are legal articles that allow companies to announce the suspension of supplies due to uncontrollable negative factors.
It states the significant risks during deliveries; in particular, in recent days, ships have changed their route from the Red Sea due to attacks on them there.
Analysts in the article emphasize that although the prospects of "Arctic LNG-2" have already been overshadowed by the US measures, this step poses severe problems for the project and may limit additional supplies of LNG to the world market this winter.
Novatek planned to begin production on the first of three lines by the end of the year to receive the first shipments from the plant in early 2024.
What is the significance of this gas project for Russia
Analysts explain that "Arctic LNG-2 is a critical Russian project as part of plans to more than triple LNG production by the end of the decade.
If the project is significantly delayed or cargoes are not shipped next year, this will seriously limit the growth of global LNG supplies — to about 2.5% against the 3.5% we forecast, analyst Thelon Custer explains to the Bloomberg Intelligence.
According to Energy Aspects Ltd analyst Jake Horslen, gas supplies will depend on PJSC Novatek's ability to deliver the appropriate volumes of gas within the terms specified in the contracts or accordance with spot agreements.
