Russian LNG struggles amid US sanctions tighten grip
No one is interested in purchasing Russian liquefied natural gas, so Novatek's Arctic LNG 2 plant has reduced production, reports "Rzeczpospolita." This is the result of sanctions imposed on Russia by the United States.
The construction of the Arctic LNG 2 plant lasted almost 10 years and cost $25 billion. However, the Russians have a problem, as there are no buyers for their liquefied gas. As a result, the surplus is being stored, and the plant had to cut production by half—from approximately 12 million cubic metres per day to about 5 million cubic metres.
"Since August, Arctic LNG 2 has produced eight batches of gas, but one of them couldn't be sold at all, even though the Russians offered discounts of up to 40% compared to market prices. Customers are cautious about accepting tankers from Arctic LNG 2, as the United States has imposed new sanctions on them," notes "RZ".
Further US sanctions
In August alone, eight Russian-owned gas carriers were added to the sanctions list. Novatek itself has been under American scrutiny since November of the previous year, causing foreign stakeholders to suspend their participation. Additionally, a South Korean shipyard is refusing to deliver gas carriers to Moscow that perform well in the ice-bound Arctic.
Washington has already announced that sanctions will be tightened, and Moscow will face even greater challenges in exporting LNG.
