Japan Weighs Energy Security Impacts After U.S. Sanctions Arctic LNG 2

The latest round of U.S. sanctions against Russian energy assets targeted at the Arctic LNG 2 project is creating uncertainty for Japanese stakeholders.

PAO Novatek, Russia’s largest independent natural gas producer, launched development of the three-train, 19.8 million metric ton/year Arctic LNG 2 on the Gydan Peninsula  in 2018 with plans to boost liquefied natural gas exports from the Russian arctic to both Europe and Asia. Now, as Novatek targets first liquefied natural gas in early 2024, its potential customers are exploring their options.

At the beginning of November, the U.S. Department of the Treasury sanctioned Novatek and several people and companies involved in the Arctic LNG project in response to alleged support of Russia’s invasion of Ukraine. It was the first...