Janice R. Andrews
Western energy sanctions are not stopping Russian gas company Novatek PJSC from moving forward with its Arctic LNG 2 expansion project. According to ship-tracking data, a fleet of tugboats pulling the second production train neared the Arctic LNG 2 project site on Saturday. The platform left a construction site in Murmansk on July 25 and traveled over the eastern Arctic for three weeks to reach the production facility, where the first train is already in service.
Russia’s aim to become more prominent in the global liquefied natural gas (LNG) market depends on the Arctic LNG 2 project. Moscow is becoming more and more dependent on this market in an effort to make up for the decreased piped-gas shipments that followed the invasion of Ukraine. With the intention of reducing the energy profits that support the Kremlin’s military endeavors, the United States placed sanctions on the plant last year. Due to the sanctions, the project has become more difficult as ice-class vessels required for LNG export cannot be delivered, which has caused shipments to be delayed for months.
Satellite photos appear to indicate that Russia has managed to get beyond these limitations in spite of these difficulties. Recent photos reveal that two ships have departed the facility, raising the possibility that Russia is evading the sanctions by operating a shadow fleet.
Climatic satellite pictures from the Copernicus Data Space Ecosystem show that the second platform is around 330 meters (1,083 feet) long and 150 meters wide. It looks identical to the first platform. Delivered to the site a year ago, the first production train set a record for weight, weighing around 640,000 tons—the biggest item transported in the history of the world LNG sector, according to Novatek.
It is unknown when the new unit will start producing results, but it took the previous train more than four months to start running after it was delivered to the Gydan Peninsula location. Should the second train adhere to the same timetable, LNG production might start in December, in line with Novatek’s objective of launching in 2024. Exports from the new facility, however, might not begin until the summer of next year, when the weather will be warmer and regular boats will be able to load LNG without the use of ice-class tankers.
“Kpler Insight expects the second production train won’t start lifting cargoes until summer 2025, when the Northern Sea Route reopens and conventional vessels can again be used to load,” says Laura Page, an analyst at Kpler Ltd.
Requests for comments on the most recent events have not yet received a response from Novatek.
Three production trains with a combined annual capacity of 19.8 million tons were originally planned for the Arctic LNG 2 project. However, TotalEnergies SE, which owns a 10% share in the project, claims that the fines have caused the third unit to stop.
