Russia’s largest independent gas producer, PAO Novatek, is struggling with its two liquefied natural gas (LNG) projects in the country’s Far North under the latest European sanctions imposed against Russia.  

Novatek’s first operating export facility, Yamal LNG, is finding it difficult to secure European buyers. And the delay in the construction of its second project, the Arctic LNG 2 facility, could constrain future global LNG supply.

Arctic LNG 2 is designed to produce 19.8 million metric tons/year of LNG from three trains. But operations are “complicated,” Novatek CEO Leonid Mikhelson admitted during the company’s annual shareholders meeting in April.

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