Arctic LNG 2 to Start First LNG Shipments in Q1 2024


Photo: VesselFinder

The first line of the Arctic LNG 2 plant has virtually started operating, with the first shipments of liquefied natural gas (LNG) from the project expected to start in the first quarter of 2024, the Russian Deputy Prime Minister said in an interview aired by the Rossiya-24 TV news channel.

The Arctic LNG 2 plant is being constructed now, its first line has virtually started operating already. We expect shipments from this project as early as in the first quarter of next year, he said.

Considering all projects that Russia has in terms of strategic development of the LNG market and construction of plants, the country may reach the level of LNG production of 100 million tonnes by 2035, the Russian Deputy Prime Minister said. "And we plan to take the share from 15 to 20% on the global market. Fundamentally, the same share that we used to have on supplies of pipeline gas," he noted.

The Arctic LNG 2 is the second LNG production-related project of NOVATEK, the largest independent natural gas producer in Russia. The project includes the construction of three lines with an annual capacity of 19.8 million tonnes of liquefied gas per year and 1.6 million tonnes per year of stable gas condensate.

60% is NOVATEK's participation interest in the project (10% – France's TotalEnergies, 10% – China's CNPC, 10% – China's CNOOC, 10% – Japan's consortium of Mitsui and Jogmec).

The U.S. imposed sanctions on Russia's Arctic LNG 2 project on 2 November.

Earlier, foreign shareholders have suspended their participation in Russia’s Arctic LNG 2 project due to U.S. sanctions, the Kommersant reported. France's TotalEnergies, China’s state oil majors CNOOC and CNPC, as well as Japan’s consortium of Mitsui and Jogmec, have since declared “force majeure” on their participation. The companies are relinquishing their responsibilities to finance and fulfill offtake contracts.

Source: TASS