Russia|The Arctic lng 2 project has been characterized as the apple of Russian President Vladimir Putin’s eye. Now sanctions seem to have pushed that back into the Arctic
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US sanctions make it difficult for Russia’s Arctic LNG 2 project in the Arctic region.
According to The Financial Times, ship tracking and satellite images show increased gas storage.
Three ships have carried LNG gas, but did not deliver it to buyers.
Russia aims to reduce its dependence on pipeline gas by developing LNG production.
of the United States imposed sanctions seem to have pushed Russia’s LNG (liquefied natural gas) project against the wind in the Arctic region.
Economic magazine The Financial Times says that Russia has started storing LNG gas in the area. According to the newspaper, this would indicate that the sanctions have driven away buyers from gas.
FT’s bases its observations on ship tracking data and satellite images. According to the magazine, it can be seen from them that three ships have transported liquefied natural gas away from the Arctic LNG 2 gas field.
However, the ships do not seem to have delivered LNG to the buyers. One of them has shipped it to a storage unit located in the Murmansk region. According to FT, the ship’s traffic between the unit and the gas field seems to be back and forth.
Two other vessels have remained in Russian or European waters, which suggests that they have not transported LNG gas to buyers either.
Arctic lng 2 – project has been characterized by the President of Russia Vladimir Putin as an eye-catcher, says FT.
Arctic lng 2 would be the order produces 20 million tons of gas and 1.6 million tons of liquefied gas per year. Thus, its full production should constitute a fifth of Russia’s annual LNG production target of 100 million tons by 2030.
According to FT, this would be more than three times the amount compared to the country’s current exports.
Russia has wanted to develop LNG gas production in order to reduce its dependence on pipeline gas sales.
The United States began imposing sanctions on Russian LNG gas in November last year. The country was wary of imposing sanctions for a long time because it did not want to disrupt the gas market.
EU size became buyers of Russian LNG gas after Russia started tightening the restrictions on pipeline gas entering Europe.
However, with the sanctions imposed by the United States, it is unlikely that European countries would start buying LNG shipped by Russia from the Arctic region, according to experts interviewed by The Financial Times.
According to them, it is still possible that liquefied natural gas ends up from Russia to, for example, India and China.
The coalition of foreign shareholders of the Arctic lng 2 project included, among others, the Chinese state oil companies CNOOC and CNPC, the French TotalEnergies and the Japanese Mitsui and JOGMEC.
Russian economic magazine Kommersant told last Christmas that the foreign partners withdrew from the financing and supply contracts of the project due to sanctions.
However, Chinese companies have asked the United States for an exemption from the sanctions.