Foreign stakeholders have reportedly withdrawn from PAO Novatek’s Arctic LNG 2 project due to sanctions imposed against the facility by the United States, jeopardizing Russia’s efforts to significantly boost its liquefied natural gas trade.

Kommersant cited unnamed sources who told the Russian newspaper that China National Petroleum Corp., China National Offshore Oil Corp.,TotalEnergies SE and a consortium of Japanese companies have suspended each of their 10% stakes in the project by declaring force majeure due to the sanctions implemented last month.

As a result, Novatek may ultimately have to finance the 19.8 million metric tons/year project on its own and sell cargoes into the spot market, the newspaper reported. None of the companies have commented on the report.

[© 2024 Natural Gas Intelligence. All rights reserved.

ISSN © 1532-1231  |  ISSN © 2577-9877  |  ISSN © 1532-1266  |  ISSN © 2158-8023  |