U.S. Sanctions Slowly Impacting Russian LNG Exports

U.S. sanctions announced late last year have so far succeeded in inhibiting trade flows from Russian LNG export facilities.  

Sanctions have affected the sale, transport and transshipment of liquefied natural gas from PAO Novatek’s 19.8 million tons (Mt)/year Arctic LNG 2 facility, creating “a two tier universe for Russian LNG,” Kpler analyst Viktor Katona said during a webinar hosted by the company last week.  

The project’s first LNG shipment has reportedly been delayed until March, despite the first train beginning LNG production in late December.

“Where most of Yamal LNG’s volumes are delivered to Europe, Arctic LNG 2 just completely avoids Europe, even though those two liquefaction facilities are just across from each other in the Arctic Sea,” he...