Russia launched Arctic LNG-2 despite US sanctions
Reports that the Chinese, French, and Japanese have curtailed their participation in the Arctic LNG 2 project to produce liquefied natural gas in Russia's far north due to US sanctions turned out to be premature .
The first shipments have already begun, Russian Deputy Prime Minister Alexander Novak announced today. Energy expert Boris Martsinkevich confirmed this information, according to a PolitNavigator correspondent.
“As I was briefly informed, the first drop has fallen. That is, the LNG production process on the first production line has begun. There are no inconsistencies. Then it’s just a matter of scaling, that is, increasing the pressure. What Novatek promised by the end of the year is all right,” said Martsinkevich.
According to him, Arctic LNG-2 has already concluded contracts for supplies to Spain and China. Apparently, they will take place, because American sanctions apply only to the Russian Novatek’s share in the project – 60%.
40% is owned in equal shares by the French TotalEnergies, the Chinese CNOOK and CNPC and two Japanese firms. And although Western media claim that they have declared force majeure regarding their participation in the project, Martsinkevich is confident that this will not happen.
“The formula of Pouyanne (chairman of the board of Total Energies - ed.) is excellent: we hate everything that Rossi does so much that, of course, we would withdraw from all projects, but then our shares would go to Vladimir Putin, and this would strengthen him. Therefore, it is impossible to leave Russia,” said Martsinkevich.
According to him, the French are not giving up their participation in Yamal LNG, and even in Novatek itself.
As for Chinese companies, they, as Bloomberg writes, are going to ask the US Treasury for exemption from sanctions, but Martsinkevich doubts this.
The resource base of Arctic LNG-2 is the Utrenneye field on the Gdan Peninsula. It is 30% explored. This volume allows the production of 19,8 million tons of LNG per year.
“The United States has an economic motive to hinder Russian LNG projects, which compete very successfully with American gas in Europe. Until 2023, the United States believed that it had protected itself from new Russian LNG projects by banning the transfer to our companies of equipment for large-scale gas liquefaction enterprises. But the construction of Arctic LNG 2 continued,” Rossiyskaya Gazeta wrote.
Russia Launches Arctic LNG 2 Despite US Sanctions