HomeEconomySanctions have halted Russia's...

Sanctions have halted Russia’s largest LNG project

Photo: Novatek

Since August, Arctic LNG 2 has shipped eight cargoes of LNG, but none have been sold, despite Novatek offering discounts of up to 40% of market prices.

Russia’s largest liquefied natural gas production project – Arctic LNG 2 Novateca – stopped production after a new round of American sanctions. Bloomberg reported this, citing sources familiar with the situation.

The plant, which cost $25 billion and took nearly a decade to build, has not found buyers for its gas, leaving it with unsold inventory. In October Novatek reduced gas production for Arctic LNG 2 to 5.3 million cubic meters per day, which is more than half of September’s level (12.1 million cubic meters per day).

Commercial gas liquefaction at the plant has only stopped operations necessary to maintain its technical condition. Since August, Arctic LNG 2 has shipped eight cargoes of LNG, but none of them have been sold despite Novatek offers discounts up to 40% of market prices.

Gas buyers are afraid to accept sanctioned tankers with Arctic LNG 2. While the plant itself Novateca fell under American restrictions in November last year, then foreign shareholders stopped their participation, and the South Korean shipyard refused to supply ice-class gas carriers.

According to the plan, Arctic LNG 2 should produce 19.8 million tons of LNG per year in three technological lines.

Recently it became known that the largest Russian producer of liquefied natural gas (LNG) is a Russian company Novatek – suspended the implementation of its projects to build new liquefied natural gas (LNG) plants in Murmansk and Sabetta.

We reported that too Novatek suspended operations at its newest Arctic LNG 2 plant due to sanctions and a shortage of LNG tankers.

New Correspondent.net on Telegram and WhatsApp. Subscribe to our channels Athletistic and WhatsApp

Source: korrespondent

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

- A word from our sponsors -

Read Now

The DPRK was promised by the “unclear” Poddjakke of Russia in the war against Ukraine

Russian military criminal, secretary of the Russian Council Sergey Shayga, visited Phogyan, where he met with Kim Jong. He promised him that the DPRK would support Russia, in particular, in the war against Ukraine. The parties discussed a joint operation in the Kursk...

In Pryluky, RF Postal House -Topl in the leader of the leader

In Pryluky, a hostile drone hit the house of the head of the local fire department. .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px; }} .Adsbygoogle {Touch-Action: Manipulation; } His family was killed: his wife,...

Russians were pushed to Constant and could be shot by a garden from artillery

The Russians have advanced towards Konstantinovka and are already shooting from artillery Ukrainian positions near the city. This is indicated in the report of the Institute of Military Research (ISW). .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px;...