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NOVATEK Issues Force Majeure Notices over Arctic LNG 2 Project

 

Arctic LNG 2 (Image: NOVATEK)

NOVATEK, Russia's largest producer of liquefied natural gas, has sent force majeure notifications to some of its clients over future supplies from its Arctic LNG 2 project, Reuters reported, citing sources.

The Arctic LNG 2 is the second LNG production-related project of NOVATEK. 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.

According to the news agency, Chinese companies Shenergy Group and Zheijang Energy, as well as Spain's Repsol, among others, had received force majeure notifications.

The news agency notes that the force majeure is probably related to the sanctions imposed by the U.S. in November, adding that the sanctions could adversely affect the Arctic LNG 2 project and its start of production, originally scheduled before the end of this year or in early 2024.

The U.S. imposed sanctions on Russia's Arctic LNG 2 project on 2 November. The Office of Foreign Assets Control, part of the U.S. Treasury Department, also issued a general license that authorises the wind down of transactions involving Arctic LNG 2 through 31 January 2024.

The Russian side considers the unilateral sanctions to be illegal and contrary to international law.

PAO NOVATEK is the largest independent natural gas producer in Russia. The Company is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons and has more than 20 years of operational experience in the Russian oil and natural gas sector. The Utrenneye field is the resource base for Arctic LNG 2. The field is located in the Gydan Peninsula in the Yamalo-Nenets Autonomous District, Russia.

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).

Source: Reuters

 
22.12.2023