US sanctions halt gas supplies from a new Russian project – media

Start of gas supplies from Russia’s new liquefied natural gas project Arctic LNG-2 will be delayed after the company declares “force majeure” due to US sanctions. Bloomberg writes about it.

It is noted that the Russian PJSC Novatekproject led Arctic LNG-2sent a notice of force majeure to some buyers of the property.

Sanctions imposed by the United States on the project in November make deliveries impossible for now.

Force majeure is a legal clause that allows companies to suspend deliveries due to factors beyond their control. The development raises supply risks to other markets as ships have been diverted from the Red Sea in recent days due to attacks on them there.

The material notes that although the prospects Arctic LNG-2 already overshadowed by US sanctions, the move poses major challenges for the project and could limit further LNG supply to the global market this winter.

The publication wrote that gas prices in Europe rose by 8.3% before settling 2% higher at 34.20 euros per megawatt-hour.

Analysts say force majeure does not mean no export from LNG Arctic LNG-2but only external factors are likely to interfere Novatek fulfill all your contractual obligations.

Project Arctic LNG-2 is critical to Russia’s ambitions to more than triple LNG production by the end of the decade.

“If the project is significantly delayed or cargoes are not delivered next year, this will severely limit global LNG supply growth to around 2.5% versus the 3.5% we forecast,” the Bloomberg analyst said. Intelligence Thelon Custer.

The gas pipeline project was previously reported Power of Siberia-2, which is necessary to replace Russian Gazprom the missing European market is moving very slowly because of the position taken by China.

On December 8, the European Union reached a preliminary political agreement on gas regulation, which will allow member countries to ban the import of liquefied gas from Russia and Belarus.