The Murmansk LNG and Ob LNG projects are on hold. Authorities plan to increase LNG exports, but they still face sanctions against Arctic LNG 2, which, ten months after the launch of the first stage, has still not been able to send a single shipment to its customers.
Novatek is reviewing plans for Murmansk LNG and Ob LNG, Kommersant reports citing sources.
“Work on Murmansk LNG and Ob LNG, according to Kommersant sources, is still frozen. The development of the Ob Gas Chemical Complex (GCC) continues, but with the possibility of repurposing the project for the production of ammonia and urea.” – writes the post.
Kommersant’s interlocutors were unable to say when Novatek will return to its projects, as it is still engaged in the completion of Arctic LNG 2 and the establishment of logistics.
“The company understands that all future LNG export projects of the company will be subject to sanctions. It is also unclear where to build ice tankers for Arctic projects, how to finance them and how to organize trade.” – the publication’s sources said.
By 2030, Russia plans to triple LNG exports to 100 million tonnes per year. However, the US and EU are imposing sanctions not only on the supply of equipment, technology and new projects. Direct restrictions apply to suppliers from other countries and to vessels participating in Arctic LNG 2 or only those allowed to participate.
The capacity of Murmansk LNG was planned to be about 20 million tons per year, and Ob LNG – 6 million tons.
The only Novatek project not subject to sanctions is the operational Yamal LNG plant with a design capacity of 17.4 million tonnes.
U.S. Under Secretary of State for Energy Affairs Geoffrey Payette He told The Financial Times that the US aim is to make the implementation of new LNG projects in Russia impossible.
The idea of Murmansk LNG arose not so long ago. It is attractive because there is no need for ice-class gas carriers, which Novatek cannot get due to sanctions. Moreover, even during the period of navigation along the Northern Sea Route, regular-class and low-ice-class tankers transport Arctic LNG-2 cargoes so far only to floating storage facilities near Murmansk and Kamchatka, since the receiving terminals and recipients may also fall under the secondary category of US sanctions. Obviously, this issue is now a priority for Arctic LNG 2, in which Novatek is the main participant.
