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.
Source: korrespondent
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